“As we’ve previously announced, we offer users the ability to buy items on Google Base and at the Google Store as well as pay for services like Google AdWords, Google Video and Google Earth.

“We have nothing specific to announce at this time,” Google’s spokesperson said.

“The brilliance of Google’s Gbuy merchant-to-consumer payment platform lies in what Google may do with the transactional data it captures from the thousands of merchants that may ultimately offer Gbuy,” Rohan said.

Source & More: ZDNet

Gbuy is google’s version of an online payment system, hence it’s also said that Gbuy will post
a threat to ebay’s infamous payment system Paypal

When Jeff Jordan learned last May that Web-search leader Google Inc. was building its own Internet-payment service, he reacted swiftly.

Mr. Jordan, who is president of eBay Inc.’s PayPal online-payments unit, immediately asked employees to unearth information about the Google service. Soon, PayPal employees were monitoring blogs, news reports and other data for information about Google’s progress in payments. PayPal staffers even gleaned details about Google’s plans during regular calls to customers who were eager to dish about how Google had reached out to them.

“It’s a very legitimate competitive threat,” says Mr. Jordan, 47 years old. “It’s hard not to pay attention to what Google is doing.”

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