The Google Checkout service allows consumers to buy products online without having to reveal their credit card details or even their email address to the seller. The service will be integrated with existing Gmail or Google Accounts.
Sellers who sign up to the programme will get a discount on transaction fees for any money they spend on Google Adwords.
For every $1 spent on Adwords, sellers can process $10 in sales free from transaction charges.
In addition, any ads they place will be accompanied by a logo identifying them as a member of the Google Checkout scheme.
Charlene Li, an analyst at Forrester Research, believes that Checkout will help Google to increase revenue for search adverts.
"It is actually positioned to solve a perplexing and core problem at Google: how to drive more search ad revenues, especially in the retail sector where search spending is reaching a plateau for top keywords," Li wrote on her Forrester Research blog.
She added that the Google Checkout logo will also build trust for unknown merchants.
"For many consumers, concern about security and privacy are major reasons why they didn't buy with a specific retailer. Smaller, less established, retailers in particular will benefit from using Google Checkout," said Li.
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