The WSJ tossed this tidbit outside its paywall, so I’ll link to it…From the article:
While Google Chief Executive Eric Schmidt confirmed in press accounts (see here) that the company was building a payment service, Mr. Schmidt also denied it would directly compete with PayPal. Mr. Schmidt said Google didn’t intend to offer a “person-to-person, stored-value payments system,” which many people consider a description of PayPal’s service.
Mr. Jordan (PayPal chief) says he and his team immediately “dissected the wording” of Google’s statements. He says he doesn’t believe Mr. Schmidt….
…The Mountain View, Calif., Web-search giant, which has terrified Silicon Valley with its ability to quickly create new consumer products and services, is developing a rival service called GBuy. For the last nine months, Google has recruited online retailers to test GBuy, according to one person briefed on the service. GBuy will feature an icon posted alongside the paid-search ads of merchants, which Google hopes will tempt consumers to click on the ads, says this person. GBuy will also let consumers store their credit-card information on Google.