Google's GBuy expected today

Google plans to take the wraps off a new online payment system dubbed GBuy as early as today, a report by Reuters states. Google wouldn't confirm the report when quizzed by Reuters, but it did say a payment service was indeed in the works. Interestingly, the company added that the service won't be introduced as a direct competitor to eBay's PayPal. Rather, GBuy is expected to be pushed as a payment system for online merchants unable to take direct credit card payments—not auctions or direct user-to-user transfers, which is PayPal's forte. According to RBC Capital analyst Jordan Rohan, GBuy will initially launch as a free trial service before Google starts taking 1.5-2% cuts on payments.

Seeing the imminent threat, eBay isn't biding its time. Last month, it announced a multi-year hookup with Yahoo that will make PayPal the "preferred payment provider" for Yahoo services. PayPal VP Dana Stadler says as a result, PayPal will be "deeply integrated into Yahoo." PayPal is also expected to double its coverage to 100 countries this year.

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