By now, you’ve probably heard of this great “war.”

Blogs have been written about it. Books have been themed around it. But most importantly, it effects your experience as a business owner and your customers’ experiences as buyers.

Some claim that PayPal is winning the war.

It would be easy to think so. PayPal’s positive aspects are obvious:

• Small business-friendly
• Welcomes international customers
• One-stop third-party payment processor
• Great anti-fraud measures
• Recognizable and trusted brand

And Google Checkout does have its fair share of negatives:

1. Required registration with Google: While some form of registration on any third-party payment processor website may be necessary, there’s one fundamental difference between Google Checkout and PayPal’s registration processes- PayPal allows customers to register using preexisting information (email addresses), while Google requires that customers get a Google account before they’re allowed to use Google Checkout. Registration on Google can be quick and painless, but the extra step can turn customers off of purchasing products using Checkout. Online customers are accustomed to hassle-free shopping experiences and do what they can to streamline their activities, whether it be by saving usernames and passwords or opting to use a third-party payment processor that they’re already registered with.

2. Can’t be used on eBay: Ebay prohibits the use of Google Checkout on its website, effectively cutting off a large number of businesses from its customers. But if Google Checkout’s history of success with promotions and credit card deals are any indication, they’re finding ways to try and recoup losses.

3. Amateurish design: Design factors into developing trust with new customers, and Google really dropped the ball on this one. Even small business developers blog about its symmetry issues and navigation problems.

4. Linkable only to credit cards and debit cards: Google does itself an incredible disservice by not linking to bank accounts. With the credit crunch in full swing, it would benefit them to increase the ways that consumers can pay sellers. Instead, they’ve simply matched PayPal in the type of credit cards they allow to be linked to an account- including the sometimes problematic American Express and Discover.

So now that you know why PayPal is popular and Google Checkout has problems here’s…

Why You Should Offer Both:

After reading the above, you’re probably wondering what I could possibly say to convince you to include Google Checkout on your website. Here are my top five reasons why you shouldn’t count out Google Checkout just yet:

1. It’s a valid option: You can still receive payments and connect with your customers using Google Checkout. And despite PayPal’s 164+ million users and its seeming monopoly in the third-party payment processor market, Google is still fighting for its share. Google was once the underdog to Yahoo, too. We all know how that turned out.

2. Established preference: There will always be a segment of consumers that prefer Google Checkout over PayPal. Why risk alienating any customers?

3. Last year’s JPMorgan report: It spells danger for PayPal, even though PayPal’s brand awareness and Google Checkout’s reported service issues still give them some cushion. Where’s the danger, you ask? Well, Google can easily invest millions into increasing brand awareness and resolving technical issues. But can PayPal win back the customers they lost to Google Checkout and grasp that impressive “highly affluent” segment that prefers to use Google Checkout?

4. Ebay’s ban of Google Checkout: The gist of it is this: Google Checkout was banned on eBay because eBay and PayPal considered it a major competitor. If two leading e-commerce businesses consider Google Checkout enough of a threat to exile it from anything associated with them, you better believe Google Checkout has some power that we haven’t seen fully realized. This is especially true when considering Google’s willingness to invest millions each quarter with the main objective to “expand Google’s network” rather than making money off the Checkout service itself.

5. Google Android: My number one reason why I think you should include Google Checkout on your ecommerce website may also be the most controversial one. A few months ago, Google unveiled Google Android, an open-source software platform and operating system for mobile phones. How is this relevant? Because cell phones are increasingly becoming more and more like mini-computers, capable of doing much more than just placing a call. Because “open-source” means “free” and “open” to any developer or manufacturer to work with, what we could see is a slew of companies making devices that work on Android. You may be asking yourself what this means for you. Well, consider this: the first Android phone was released a few months ago. Guess what it required to function? That’s right. A Google account.

In conclusion…

Offer both. PayPal and Google Checkout both have advantages and disadvantages, regardless of how it may seem on the surface. Despite some struggles, it’s too early in the game to determine a real winner here. In the meantime, don’t miss out on sales and sign-up incentives with Google Checkout that could benefit your business now or in the future.