Several retailers have been quitely testing a Google payment system GBuy, developed since the early part of 2005. Users will see a GBuy icon next to AdWords paid search ads, reports David Utter for Web Pro News.

That PayPal revenue may look like a big jar of chocolate chips to the Cookie Monsters at Google. Their rival system, called GBuy, has been getting a workout since the early part of 2005. The Journal cited a source briefed on the service:

For the last nine months, Google has recruited online retailers to test GBuy, according to one person briefed on the service. GBuy will feature an icon posted alongside the paid-search ads of merchants, which Google hopes will tempt consumers to click on the ads, says this person. GBuy will also let consumers store their credit-card information on Google.

This product is strongly competitive to PayPal, the already dominated online payment owned by eBay, which was purchased in October 2002. PayPal has easy-to-use features and strong security.

Although Google is just entering the market, their brand gets a lot of attention. Obviously it will start as a payment option for Google’s own native sites, but will it make it as a payment method for others?

Source: Web Pro News.