Internet search giant Google has launched an online payment service in the UK that will allow it to compete with PayPal and other mainstream processing services.

Google Checkout will allow customers to register their payment details once and make purchases from participating retailers with just two clicks of the mouse.

The service stores the payment details in a central database and conceals the credit card number to prevent fraudulent transactions.

Online retailer Speedy Camel is one of the first retailers to take advantage of the new payment system.

Speedy Camel allows customers to barter over the cost of products from high street retailers such as Halfords, Jessops and Beaverbrooks, as well as specialist suppliers, says its retail director Graham Hoyle.

‘Some 78 per cent of online searches are done through Google so it makes sense to use Google Checkout as it allows consumers to search and buy in one process,’ he said.

It is also likely to increase sales because many consumers abandon online purchases when forced to register their details, he says, but Google Checkout allows consumers to register just once with a trusted brand.

Google Checkout was implemented on time and on budget by the Big Group to make it one of the early pioneers of Google Checkout.

Google Checkout also works with Google’s advertising program, AdWords, so retailers can attract more customers. The Google Checkout icon on AdWords advertisements makes it easier for shoppers to identify retailers offering it during online searches.

It is also easy to integrate with existing checkout options, says Google senior product manager Jerry Dischler.

Integration options include cut-and-paste buy buttons, as well as an advanced application program interfaces that integrate with existing retailer shopping carts and order management systems.

‘Shoppers will have a better experience when visiting retail web sites and since it was launched in the United States last summer, thousands of online retailers and millions of shoppers have started using it,’ said Dischler.