Read this on TechCrunch. Not very exciting (unless you are an Amazon shareholder or seller) and not a big stretch for Amazon. The one-click checkout is much faster than eBay so this idea may have legs. Amazon knows the payment space as well as anyone. Google actively attempts to block users from going to Amazon. If you click on a link in Google for an Amazon product they take you to a warning screen about leaving Google. I have not seen this "warning" screen with anyone other than Amazon...
Google payment is blocked by eBay and will likely be blocked by Amazon. With Froogle shut down and Products just launching they do not currently have a serious play in the ecommerce space and may look to acquire one.
http://www.techcrunch.com/2007/08/01/amazon-to-launch-payments-services-will-compete-with-paypal-and-google-checkout/
