Google will reportedly launch its own version of an electronic payments system to compete with eBay's PayPal by the end of this year. Anonymous reports first surfaced late last week in some traditional media organs reporting on a Piper Jaffray investor conference panel on which Google was not a presenter. The New York Times now cites an online merchant that said it was approached by Google for trying out just such a service.

Another merchant said that some of his clients had been approached to participate in a program titled Google Wallet.

PayPal's sales comprise roughly a quarter of eBay's current revenue, which is threat enough. But, notes SearchEngineLowdown, with a payment system in place, "Google Auctions" would be a mere hop away.