Google has finally launched its online payment system, called Checkout and not Gbuy.

As expected, it works together with Google search advertising program, AdWords, to help merchants acquire new customers and process all, or a portion of their Checkout sales for free.

"By integrating the checkout process with search and advertising, we're helping our users complete the cycle of searching, finding, and buying", said Salar Kamangar, Vice President of Product Management at Google.

"In the offline world, shoppers don't tolerate long lines and tedious data entry just to buy something. They shouldn't have to in the online world either."

"Google Checkout simplifies and improves the online purchase experience for both consumers and merchants."

Whenever someone shops online, they'll fnd a Google Checkout icon either on an AdWords advertisement or as part of the options to pay on a merchant's site.

First-time users can create a Checkout login from the merchant's site with a login and password that they can then use when shopping at any other Checkout-compatibile store.

Because Google Checkout takes shoppers to a different site, all of their buying history can be viewed in one place.

It adds security to the buying process, as it conceals the buyer's credit card number, and even guarantees reimbursement for unauthorised purchases.

Merchants who are also AdWords advertisers can process all or a portion of their sales for free once shoppers use Google Checkout on their site, and for every $1 spent on AdWords, they can process $10 in sales at no charge.