Is Google's payment service a threat to Paypal? It would seem that Ebay thinks so, as it puts the new Google service on the non-accepted payments list.

Google has recently announced its online payments service, Google Checkout. The company has teamed up with CitiGroup Financial to deliver the service.

Google is developing an online payment system designed to go toe to toe with PayPal, the New York Times reports. The new service is rumoured to be called Google Wallet.