Electronic auction house eBay has added Google's newly-launched online payments system, "Google Checkout", to the list of payment services that are prohibited on its Web sites.
The Google system which was launched last week, allows customers to make purchases from Internet retailers without having to repeatedly enter credit card details. The new service is widely seen as a challenge to eBay's PayPal service. Although it is different to the person-to-person payments system, the Google service does target the same off-eBay markets that are being targeted by PayPal.
EBay says it recently conducted a review of payment options available and has updated its policy to identify those payment methods deemed "appropriate for the eBay marketplace".
The online auction house is preventing sellers from using Google Checkout by listing the new service as one of its prohibited payment options.
EBay warns that sellers offering buyers the option of using any of the blacklisted payment services could see their listings cancelled and accounts suspended.
EBay spokesman Hani Durzy told reporters that the company will monitor customer demand for Google Checkout and could change its policy in the future.
The threat from Google has already prompted a management shake-up at PayPal, marked by the departure yesterday of president Jeff Jordan.