Banking is a perennial thorn in the side of even the largest and most successful adult websites. All adult companies are overcharged by merchant banks poorly equipped to deal with transactions they consider to be ‘high-risk’.
Before PayPal withdrew from offering billing services to adult companies (around the time they were acquired by eBay), they were the preferred customer choice for the websites that offered them as a payment option.
It’s hard to justify PayPal’s withdrawl on ‘moral’ grounds given the volume of pornography sold via eBay.
Conclusion: Google is already in the porn business and it would be damaging to withdraw.
Conclusion: PayPal have banned ‘high-risk’ transactions due to a lack of technical expertise. Google can satisfy a waiting billion dollar market by catering to adult transactions.
Conclusion: Taking adult transactions will give Google the ‘adult edge’ that VHS used to overtake Betamax. PayPal’s neglect is Google’s opportunity.
Update: The ever inquisitive Gary finds that Google already owns “GooglePorn.com” and some others..