staff and news service reports
updated 6/27/2006 8:11:52 AM ET 2006-06-27T12:11:52

Internet search engine Google Inc. is set to introduce a test version of its online-payment service as early as this week, The Wall Street Journal is reporting, citing people briefed on the situation.

To attract customers, Google plans to offer an unspecified rebate to people who make online purchases using the service, known as GBuy, the Journal said.

The service, which would challenge payment options by Ebay Inc.'s PayPal and others, has been expected for several months, the newspaper said.

The process is expected to allow consumers who search for items on Google to see text ads with a special symbol showing advertisers that accept GBuy payments.

When shoppers click on an ad they will reportedly be taken to the merchant's regular site but will be directed to a different checkout procedure if they choose GBuy to pay for their goods.

PayPal has more than 100 million users.

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