Google could've really capitalized on this now if they didn't sit on their asses for years with Google Checkout. They will probably focus more on it now that they've renamed it to Google Wallet and they need it for Android, but it will take a while before it can even touch Paypal.
I don't believe Google could do it right. Nope, not with their track record of (automatically) blocking ad publishers' accounts and later stonewalling said publishers. All in the name of click fraud prevention, of course.
I think they realize this and it might be the reason they drag their feet on Google Checkout.
