Tue Jun 21, 9:01 PM ET
SAN FRANCISCO (Reuters) - Web search leader Google Inc.(Nasdaq:GOOG - news) is developing an online payment system but not a direct rival to eBay Inc.'s PayPal, Google Chief Executive Eric Schmidt said on Tuesday.
Schmidt spoke after several days of heated speculation over reports that Google was working on a potential rival to PayPal, eBay's popular online payment system.
Schmidt said Google does not intend to offer a 'person-to-person stored-value payments system' like PayPal's, in which money briefly resides in PayPal's control during the transaction, but he did not give details of how the Google system would differ."
