Google Checkout lags eBay’s PayPal in customer satisfaction

Google Checkout has achieved a modest level of success since its launch in June of 2006, but it has a long way to go to catch up with PayPal, according to a report by investment firm J.P. Morgan Securities.

The company surveyed approximately 1,100 customers about their online shopping habits and found that Google Checkout had a relatively quick market penetration of six percent despite having only been open for eight months. However, satisfaction with Google Checkout leaves much to be desired.

Only 18.8 percent reported having a “good” or “very good” experience with Google Checkout, compared to PayPal’s 44.2 percent. Will Google Checkout ever be able to compete with PayPal? It’s possible, considering that PayPal customers, although certainly more satisfied than Google’s, are far from delighted. My 20+ years of experience in customer satisfaction has demonstrated that a customer who is not highly satisfied is unlikely to be loyal, and is therefore vulnerable to competitors.