were lower Monday after a report that Internet search company
may offer an electronic-payment service later this year that might be similar to the online auctioneer's PayPal unit.
The report appeared in
The Wall Street Journal
. The article cited sources with knowledge of the matter and said a payment service would help Google add a revenue stream separate from online advertising, which currently makes up the vast majority of the company's top line.
PayPal enables eBay's customers to buy goods through electronic-payment accounts. eBay bought the company in 2002.
eBay was down $1.23, or 3%, to $36.82 in Nasdaq trading. Google was losing $5.78, or 2%, to $274.52.
In the first quarter, eBay recorded total revenue of $1.03 billion, of which $233.1 million came from payment services.