There was a comment about Google Payments at it's Analysts Day:
"Question: Google payments has been expanded to Google Base. How will it be expanded to other advertisers, like click-per-call? Is it a threat to PayPal? Schmidt: "There's been a lot of speculation. We are on the record saying that we are not intending to compete with PayPal... "It makes no sense to compete with what others are doing well... " EBay and PayPal are very good partners to us. Google's payments approach is a tactic to solve an important problem - to have an ad turn into a purchase. The quicker we can automate that - including payment, fulfilment, etc - the more sales there'll be."