Google has launched Google Checkout, a payment system for online retailers that's tightly integrated with Google AdWords. Checkout isn't the rumored PayPal killer, but it does offer some compelling features for both merchants and online shoppers alike.

Rumors have been flying for more than a year about a payment system under development by Google. Reports emerged that Google was developing a micropayments system, an online wallet, even a PayPal killer (see this blog post for a chronology of Google payments speculation over the past year).

In fact, Google Checkout, is simply an extension of technology the company has developed internally for its AdWords, Base, Picasa and other services.

Read the Searchenginewatch.com Google Checkout review here.