Google CEO confirms payment service

Google CEO Eric Schmidt has acknowledged that his company’s Google Payment Corp. subsidiary is engineering an electronic payment system, but shrugged off speculation that it would be competing with eBay’s PayPal. Rumors of a planned service peaked over the weekend and sent eBay shares falling early Monday.

"We do not intend to offer a person-to-person, stored-value payments system," Schmidt said in a statement read to reporters. "The payment services we are working on are a natural evolution of Google’s existing online products and advertising programs, which today connect millions of consumers and advertisers."

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