Google finally launched its much anticipated buy button earlier in July, and they are calling it “Purchases On Google”. The adverts have started appearing on eligible product listing ads on both Android and iOS smartphones. Google took a decision to only launch this as a limited pilot with a few select retailers such as Macy’s (in discussion).

When users click on Purchases On Google-enabled ads, they will be directed to a page hosted by Google where they can select sizes, pick colours, and then complete the purchase using payment data stored in Google. Google will then pass these orders through to the retailers and the normal order fulfilment process is initiated. The introduction of Google Shopping ads on smartphones has helped transform the search engine and promoted it from being a mere referrer of e-commerce traffic to a fully blown transactional middle-man.

Google will not pass customer payment information to the retailers, and Google has promised to provide numerous payment alternatives. Customers will be allowed to save their payment details to use for future purchases.

The example below shows a user searching on mobile for “women’s hoodies”. She might see a shopping ad with a “Purchase on Google” button and when she clicks the advert she is directed to a retailer-branded page hosted by Google. There is simple, seamless and secure checkout (3s) using saved payment credentials in her Google Account.

There a many worried retailers as this is truly a controversial move, similar to how Uber has disrupted the taxi industry. Retailers feel that Google’s bold move to enter the buying process will not only hinder customer relationships, but will give Google access to invaluable consumer data.