More on Google's paypal

"Google's flagship search engine and its Froogle shopping service are significant sources of customers for Internet stores. But so far, Google's only way to profit from its presence in online shopping is by selling advertisements that appear next to its search results and on Froogle pages.
Google has long been rumored to be developing a classified advertising service, one that would compete with eBay and with the popular free site Craigslist. A payment system would help Google bring into its marketplace individuals and small businesses who are not authorized to accept credit cards online. "

[NY Times]