Google's Checkout system coming to UK

LONDON (Reuters) - Web search leader Google launched a UK version of its Google Checkout payment system on Friday which aims to simplify online shopping and offer a rival to eBay's popular PayPal.

The system, which launched in the United States last year, offers a payment system that enables customers to use one Google login to pay for products on any participating online retailer.

The Google system retains the customer's contact, payment and shipping details, meaning they do not need to be entered every time a purchase is made.

The system could also boost Google's search advertising business as it works with its search ad programme, AdWords, allowing AdWord advertisers to process all or a portion of the transaction for free.

According to data from the Internet Advertising Bureau, online ad spending grew more than 41 percent in Britain in 2006 to break the 2 billion pound barrier, taking its market share to 11.4 percent and nearly double the global average of 5.8 percent.

Google said "thousands of online retailers and millions of shoppers" had used Checkout in the United States, without giving any specific details.

PayPal, the online payments unit of auction Web site eBay, said at the end of 2006 it had 86 million U.S. PayPal users and 47 million international users.