Google races to checkout with payment service

Google has premiered its payment service, Google Checkout, in the UK.

The application is designed to supplement Google’s core business of selling online adverts by offering low cost transaction processing for its advertisers.

Initially only available in the US, a European-wide rollout of Google Checkout will take place later this year.

Its payment system will compete with established card processing services used by online stores, and eBay’s Paypal service.

From now until 2008, merchants that offer Checkout in the UK will receive free credit and debit card processing for all of their checkout sales, but competition will be tough.

PayPal has been operating for more than nine years and was bought by eBay in 2002. It currently holds a 25% market share.

Google Checkout does not allow person-to-person transactions and is aimed at consumer-to-merchant payments only.

Related article: Google wins Google Earth patent battle

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