Google chairman Eirc Schmidt says the Internet search giant once considered creating its own peer-to-peer money system, dubbed Google Bucks, but binned the idea because of regulatory concerns.
The same problem has existed since the time of Beenz. many others have found the same problem - some research would have revealed this would become a show stopper.... I guess there is more mileage in not researching, announcing - then retracting.
While I've always maintained that there's a huge need for banks to reduce the friction involved in their current crop of ePayment products, I've never felt that they could be disintermediated in this space by the likes of Google, Facebook or PayPal. Looks
like the first purported challenger has withdrawn and the second one is urging caution. The regulatory ax has already come down on the third in India and I hope it's just a matter of time before it will be cut down to size in its primary markets like USA.
I'd recently commented on Finextra that there's a difference between payments and shipping a parcel or booking a plane ticket. This announcement ought to make people
realize that, while Internet Search is hard, payments isn't easy either.
CompetitiveNew York City, NY (USA)
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