Google’s cloud favored to win PayPal’s business
Google’s aggressive push into cloud computing, where it trails Amazon.com and Microsoft, has put the internet giant in the lead position to land a marquee client: PayPal.
While Google is the front-runner, according to people familiar with the matter, PayPal is evaluating the other leading providers and hasn’t made any final decisions. PayPal is unlikely to move its technology infrastructure in the fourth quarter, the peak period for online commerce, said the sources.
With close to $80 billion in cash and equivalents at the end of the second quarter and a $10 billion annual capital expenditure budget for parent Alphabet, Google has plenty of ammunition to engage in a pricing war.
PayPal is a massive technology company built in the pre-cloud era. Within its own data centers, the company processes $10,900 worth of payment volume per second and stores information on 188 million active accounts in over 200 markets.
Google’s cloud has won praise for powering Snapchat and Spotify, and it recently picked up business from Home Depot and Walt Disney. Nabbing PayPal would represent another big step in its pursuits.