Gbuy chatter--on the money?

Rumors are surfacing again about Google's alleged plans to roll out an online payment system.

According to a research note published by a Wall Street analyst last week, Google will launch the Gbuy service June 28. The PayPal competitor would initially be free, but merchants may eventually be charged a 1.5 percent to 2 percent per-transaction fee, according to Jordan Rohan, an RBC Capital Markets analyst.

Bloggers buzzed about whether the service--which would be slightly cheaper than PayPal--could successfully take on eBay's payment program, which has successfully fought off many other competitors.

Blog community response:

"Will the service cut into PayPal's market dominance? I think it will if they can offer a slicker service, and more importantly, a smaller commission."
--Darryl Lyons' Blog

"If we increasingly trust Google with our searches, our e-mail and all other kinds of data, why not our cash? Whether we can stomach the thought or not, Gbuy has its work cut out for it against an entrenched PayPal."
--Searchviews

"If recent Google launches are anything to go by, PayPal doesn't need to worry too much just yet. Google has proven very effective at getting the hype out there for any new product it launches, but very few of its recent launches have lived up to the hype."
--Tom Raftery's I.T.Views