Google's Wallet Not Another PayPal

That's according to Google CEO Eric Schmidt. The tantalizing quote from Schmidt was:

"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."

The San Jose Mercury/Silicon Beat's Michael Bazeley has eBay CEO Meg Whitman's reaction to Google Wallet. And Forrester's Charlene Li speculates on what it all might mean.

Given Schmidt's comments, there may or may not be a Google classifieds/ listings business in the works.

Google would really do damage to its relationship (via AdSense) with newspaper publishers if it were to launch another Craigslist to support and drive revenue from Google Wallet. It would probably suffer more newspaper defections accordingly.

So it will be very interesting to see the precise form of Google's Wallet when it launches.