All I can say is wow…makes sense. Caught this from Reuters:

“Google Inc. this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may heighten competition with eBay Inc.’s PayPal unit, the Wall Street Journal reported on Friday.

“Exact details of the search company’s planned service are not known, the report said, but quoted people familiar with the matter as saying it could have similarities with PayPal, which allows consumers to pay for purchases on Web sites by funding electronic-payment accounts from their credit cards or checking accounts. A Google spokesperson contacted by Reuters declined comment.

“For Google, based in Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99 percent of its $3.2 billion in revenue last year, the Journal said. Online-payment providers typically take a commission on each transaction. Depending on the exact details, Google’s move could potentially threaten eBay’s successful PayPal service, which generated $233.1 million, or 23 percent of eBay’s revenue in the first quarter, the newspaper reported. More….