Google released their long talked about payment system, Checkout. They claim it’s not a PayPal killer, and that it’s a very different type of product. CNet has an article here describing it a bit.
Now, PayPal is great, I love what eBay has done with it, and I think people will prefer to use PayPal because of the brand recognition it has created for itself.
Google will have a harder time (I think) getting consumers to use Checkout. Most of the stores out there will probably offer PayPal, Checkout, and another form of payment. For the sellers, some will already be AdWords users, and will use Checkout, but getting consumers to switch is harder.
There’s also the privacy issue that I am sure some people will bring up. I trust Google with nearly all my data. Email, Hosted email, Personalized Search, Calendar, Notebook, etc. and I will definately be getting friends and family to use Checkout also. But some stubborn person out there will say Google knows too much about it’s users… Well, they probably do, but I trust they won’t use it in a bad way. 
