Except from Globe and Mail article about Google Payments

globeandmail.com : On-line payments next on Google's to-do list:

"At the moment, when you click to buy something through Google Video or the Google Store, you have to sign an agreement with Google Payment Corp. -- a company the search engine giant set up last fall. Going to 'purchases.google.com' brings you to a login screen for your Google account, and the site then presents you with a list of all the videos and other items you've bought.

In other words, the structure is already there to support a whole range of purchasing. And while it is still early days for Google Base, the service has already been used by car dealers and real estate agents as a classifieds-style service, one that allows companies to upload their own database of items (hence the name Base) relatively easily. This could put the service squarely in the same camp as eBay, and appeal to that company's core market of 'power sellers.'

Silicon Valley venture capitalist Bill Burnham has said a Google shopping portal could provide stiff competition for eBay's 'Buy It Now' feature, which accounts for about 35 per cent of eBay's revenue. Among other features, he notes that Google Base doesn't charge listing fees (as eBay does), only transaction fees -- although that might change if the service were extended to small businesses.

The potential for Google's payment services could be eeven broader than just Google Base, however. Forrester analyst Charlene Li points out that Google already accepts payments from its partners in the AdSense program, which gives it a good platform to launch a micropayment-style service, one that would allow consumers to pay tiny amounts for Web content, all of which could be aggregated by Google and distributed to publishers."

Read the whole article here