Google online payment service may launch on 28 June Overdramatic reports label it the "PayPal killer"

27 June 2006 10:54 GMT / By Amber Maitland

The talk about Google's online payment system, currently dubbed Gbuy, hotted up as analysts predict that it will be launched this week.

According to a report in The Wall Street Journal, Google plans to offer a rebate to purchasers who use the online system, in order to attract customers.

Gbuy is expected to rival eBay's PayPal in terms of popularity.

According to one report, customers using Gbuy will be taken off the site from which they're buying and will therefore enable Google to capture e-commerce transaction data about them. This will result in more targeted marketing, as Google will be able to let advertisers know which paid-search results turn into actual sales.

Google has been very quiet about the new system, alternatively known as Google Checkout, ahead of its new launch, which has driven more speculation.