As competition grows fierce between eBay and Google, the first takes action to further ensure its position as market leader in the field of online payment services, in response to the new threat posed by Google. In this context, eBay's customers will not enjoy the ability of making online transactions via Google Checkout service. In this regard Google Checkout joins the likes of Netpay.com, Qchex.com, ePassporte.com and BillPay.ie that are also not permitted on eBay.

The measure taken by the auctioning site comes as analysts have predicted that Google Checkout is a viable rival for eBay's own online payment service PayPal. "I think there's only one answer here, which is [eBay is] afraid of the competition," said Jaap Favier, a vice president at Forrester Research Inc. "Google Checkout could be an enormous threat for PayPal."

"Permitted on eBay.com: Sellers may offer to accept PayPal, credit cards including MasterCard/Visa /Amex/Discover, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept bank-to-bank transfers, often known as bank wire transfers or bank cash transfers. Sellers may accept COD (cash on delivery) or cash for in person transactions. Sellers may offer to accept personal checks, money orders, cashier's checks, certified checks and other negotiable instruments. Please see the "Some Examples" section of this policy for those evaluated payment services permitted in the eBay marketplace," reads a message posted on eBay. The auctioning site doesn't in any way make direct reference to its new found rival, but has also chosen not to comment on its decision to ban Google Checkout.