Google Checkout just announced that they’re going to put their transaction processing fees up to 3.4% + £0.20, from 1.5% + £0.15. This brings them to exactly the same price point as Paypal, and represents around a 250% increase in the cost of processing a transaction.

I don’t really see what the point is in pushing Google Checkout now, except for those people who somehow think that Paypal is evil and Google isn’t. Since both of them decrease the per-transaction fee based on your transaction volume, it doesn’t make sense to split your transactions between more than one of them.

I guess Google decided that they had spent long enough undercutting Paypal.