Google has not said much about their Google Wallet project but we know this: Google CEO Schmidt said in an interview with the Associated Press:
"We do not intend to offer a person-to-person, stored-value payments system. The payment services we are working on are a natural evolution of Google's existing online products and advertising programs which today connect millions of consumers and advertisers."
Well. I hope they come stomp on PayPal a bit - they need a good reality check - we all need it.
Google Wallet May Compete With Paypal