Gbuy The much awaited payment system from the trusted Google Inc. is about to be launched at the end of the month, expected to be on 28`th of this June. It’s main competitor would be the market dominating, eBay’s online payment system, Paypal. Gbuy is expected to be free during the initial phase, but merchants may eventually be charged a 1.5 percent to 2 percent per-transaction fee, Jordan Rohan, an RBC Capital Markets analyst, said in his research note. A fee of that size would be slightly less than that charged by PayPal.

Zdnet reports,

Google is able to gather the data when users click on a merchant’s Gbuy feature. Consumers are then transferred to Google’s Gbuy site, where they complete the transaction.

Google’s payment system, as a result, holds the potential to monitor which paid-search results users click on and of that group, which ones turn into actual sales. With that information, Google may find itself in the enviable position of being able to identify which categories bring in the highest return on investment for advertisers, Rohan stated.

But Derek Brown, an analyst at Pacific Growth Equities, cites other reasons why the data may prove valuable to Google.

The data could provide useful guidance on where to place its sponsored links, in order to generate higher traffic, as well as give greater insight into the buying habits of its users. And that, as a result, may prompt the Internet titan to deliver targeted ads to those users, Brown said.

Some merchants, however, may fear that Google would use this information to deactivate keywords and then require a merchant to pay a higher minimum bid to reactivate the keyword, Rohan said.

But merchants may find the lure of having the Gbuy logo next to their sponsored search link too appealing to pass up, even if it potentially means giving Google a closer view into their business, Rohan noted in his research note.

// Seems like eBay is trying to get into the Google competetor list, ebay probably will launch advertising like adsense.