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JP Morgan has released a study which shows that Paypal is still seven times more popular than Google’s rival system, Checkout.

Google Checkout launched last year with an aggressive challenge to PayPal, although it has encountered resistance from etailers that are reluctant to cede ownership of customers to the search giant.

JP Morgan surveyed over 1,000 adults about their online shopping behaviour – and here are some of the key findings:

  • Checkout adoption hit 6% in its first year – though Google’s adoption rate of 6% is much lower than PayPal’s (42%), the results indicate a good start for Google.

  • Checkout users are male, affluent, and young – Google Checkout's penetration rates are two times higher amongst men. In addition, 34% of Checkout users have incomes over $75,000, compared with 25% for PayPal and 20% for all online shoppers. Checkout users are also younger, with 57% under 35, compared with 36% for PayPal.

  • Checkout needs to sort out some teething problems  44% of PayPal report ‘good’ or ‘very good’ experiences, compared with only 19% for Google Checkout.

  • PayPal maintains its leadership position - PayPal’s 42% penetration rate in 2006 was seven times that of Google’s. Also, 43% of those surveyed prefer PayPal, while only 2% prefer Google Checkout.

  • Checkout brand awareness trails PayPal - around 80% of respondents indicated awareness of PayPal, compared with only 45% for Google Checkout.

Graham Charlton

Published 18 January, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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