Google Report Spooks eBay Investors

The online auctioneer's shares are down 3% on worries about a competing payment service.
Publish date:

Shares of


(EBAY) - Get Report

were lower Monday after a report that Internet search company


(GOOG) - Get Report

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.