Google to launch its own version of PayPal

Google is planning to launch an electronic payment system that will rival eBay’s PayPal payment system, although Google is playing down any challenge to it.

Dubbed “GBuy”, the new payment system is expected to be beta tested by Google among online merchants in the near future.

Google says its system will be aimed at web advertisers and not consumers, although it will work in the same way as PayPal, in that consumers will be able to pay for things electronically from merchants.   

It is not known at this stage whether consumers would have to have a registered GBuy account to be able to use the system, in the same way that the PayPal system works for most of its users.  

While the beta trial is running, merchants will be able to use the system for free, but in the future, when the solution is commercially launched, it is expected that they will be asked to pay a commission on each transaction completed.   

There is speculation that GBuy may make its first appearance among online merchants as soon as the end of this month, but Google has not confirmed any timings yet.