It looks like Google has realised that PayPal are sitting on a goldmine. They are now looking to compete in the electronic funds transaction market and I, for one, am all for it.
Google Plans Online Payment Service
Competition in this niche is critical - PayPal are really the only players here and their charges, while on the surface reasonable, are not trivial and soon add up. Competition can only be good for us consumers.
I really wonder if banks know what's going on here. Like the recording industries (music & movie) technology has advanced to the point where the old mainstay institutions are being threatened. And they don't seem to be aware of it.