Google's payment service offers cheaper rates than Paypal, 20 cents plus 2 percent of the purchase price. Google's also offering a discount for its payment service when a user also uses its advertising service. This could be a big turning point for Google similar to when Microsoft introduced Word for its Windows application. Google can leverage its dominance in search and advertising to create more earnings from payment services.
http://www.nytimes.com/2006/06/29/technology/29google.html
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