Schmidt says Google Wallet won't Compete with PayPal

Story Text:
In an interview with AP, Google CEO Eric Schmidt said "We do not intend to offer a person-to-person, stored-value payments system". He didn't say much, (hey, what did you expect, this is Google...) but did add "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"...
Forrester's Charlene Li thinks it may have something to do with micropayments. Her post was written before the AP story broke:

AdSense already puts paid links on thousands of content sites, so why not also enable them for micropayments? Google is already very good at tracking and collecting clicks worth five cents each. Google could also offer be a subscription “pass” that securely grants users access to premium content on multiple sites, with each site getting a share of the payment based on usage.

Whilst MarketWatch's Bambi Francisco thinks she's found the real sting in the tail, Google Listings...

But it's not so much a payment system that presents an imminent threat to eBay. In my opinion, it's a Google listing business, and/or classified business that poses a real danger to eBay.
In fact, I'd go as far as to say that if Google really wanted to get at the heart of eBay's business, it would simply turn on a classifieds or listings business.

She goes on to list a whole bunch of reasons why this is more likely, and easier for Google to implement than a PayPal rival...
Watch out eBay, Google wants YOU!