This week, possibly as soon as Wednesday, Google is expected by many to unveil a new Internet payment system. It may start out as an online wallet but could become a PayPal-like infrastructure for payments across the Web, handling everything from skis to music and videos, analysts said Tuesday.

As a wallet system, Google Checkout would let shoppers carry their payment information around to multiple different merchants and save them the time of having to enter their credit card and billing data every time they shop, Rashtchy said. Users are expected to be offered rebates, and merchants can get discounts on ads.

Google Checkout has been billed by some reports as a "PayPal killer," but it's likely to be much more, Rashtchy and other analysts said.

"I think that if this thing succeeds, it will eventually succeed where PayPal hasn't…as an efficient payment mechanism for a wide range of e-commerce transactions," said Safa Rashtchy, an analyst at Piper Jaffray.

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I am looking forward to it. PayPal is proving too costly for small to medium merchants. Also internet commerce will boom with an efficient micro-payment system.

Note: Name updated.