Google takes aim at PayPal

NEW YORK (CNNMoney.com) -- Google is offering merchants free use of its online payment service, the Internet search giant's latest move to gain share from eBay's PayPal service.

Google (Charts) is extending free use of its payment service to online merchants through the end of next year, the company said in a blog devoted to Google Checkout.

The free processing promotion was set to expire at the end of this year.

Mountain View, Calif.-based Google, which rolled out its checkout program in June, has been trying to drum up support of its service with incentive programs.

Last month, it began offering customers $10 off a $30 purchase for transactions made via Google Checkout.

PayPal, owned by eBay (Charts), said in November that customers would be eligible to receive a cash rebate of up to $20 off when using PayPal to make purchases on certain merchant Web sites.

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