Google head says they aren't competing with Paypal

Well not directly anyway. Schmidt says:

"We do not intend to offer a person-to-person, stored-value payments system,"

I guess his line was so important that they put it in this article twice. Maybe he yelled it the second time when the AP reporter kept wheedling him about it. This is interesting also:

American Technology Research analyst David Edwards believes Google's payment product initially will be tied to its shopping comparison service, Froogle. The company also plans to let people view online videos stored in an index, prompting some other observers to predict the service will be designed to sell content found through its search engine.

It seems this payment thing will be like an online wallet that allows you to put money into it to buy stuff you see on Froogle. You could probably do this without a credit card too because you could fund the wallet with a money order. You could also fund the wallet with a credit card too if you wanted to.

This would be a good idea too since the individual sellers don't have to deal with credit card or money orders because Google will be taking care of them. That sounds a lot like Paypal though. Actually if you parse his words:

"We do not intend to offer a person-to-person, stored-value payments system,"

The online wallet really isn't a person-to-person thing rather it is a person-to-Google thing. Also it isn't a stored-value payments system but a stored-value buying system. Yup, maybe it's like Paypal but just different.