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Google Online Payment System

Web search leader Google is developing an online payment system but not a direct rival to eBay's PayPal, Google Chief Executive Eric Schmidt said Tuesday.
Schmidt spoke after several days of heated speculation over reports that Google was working on a potential rival to PayPal, eBay's popular online payment system.
Schmidt said Google does not intend to offer a "person-to-person stored-value payments system" like PayPal's, in which money briefly resides in PayPal's control during the transaction, but he did not give details of how the Google system would differ.
"The payment services we are working on are a natural evolution of Google's existing online products and advertising programs, which today connect millions of consumers and advertisers," Schmidt told Reuters in a brief telephone interview in which he declined to elaborate.
"We believe that e-commerce can be improved and we are working on ways to improve the user experience," Schmidt said.
The company declined to say when a product would be available.