I know one issue some webmasters face when they move away from their merchant account to paypal is a drop in conversions/sales, has anyone faced this problem when it comes to google checkout? Right now my customers don't have to leave my site to checkout and it's all done on one simple form, my main concern with google checkout is that they will either not know how to get it setup to buy the product or not want to have their information stored with google. I know a few months ago when I switched to paypal for a week I noticed about a 20% drop in sales compared to my merchant account, so will I face this same problem with google checkout?
I would imagine you will see a further drop going from Paypal to GCO. Paypal at least has a lot of trust and recognition with it. GCO is still too new for a lot of consumers to trust. Even with Google's name attached to it, it's just not widely used enough stand on its own. Was there a specific reason you've been switching?
I totally agree with Jestep. While PayPal may return lower conversions vs. your merchant account, Google "Checkout" may return even lower conversions while their new program gains familiarity. One way to offset conversion losses is by promoting the new Google Checkout and potentially generating profit by refering new users to their service. Paypal is inextricably tied to eBay and remains a payment processor of choice for many; especially in the United States. Perception is reality in terms of trust and familiarity and Paypal seems to rise above the competition in terms of conversions. Alternatively, why not offer your Merchant account and an additional Google Checkout or Paypal payment options? It seems like you be might able to capture the best of both worlds. Keep us updated on how the transition goes... Good Luck and Take Care!