Analysts have speculated whether Google would enter into direct competition with PayPal, dubbing its potential new service "GBuy" to capture commercial transaction data.

Google's system aims to allow quicker purchases by a consumer from a marketer, and a beta version is expected soon, said Google CEO Eric Schmidt.

"It's not like PayPal at all," Schmidt said when asked about GBuy during a New York meeting hosted by Conde Nast's Portfolio business magazine.

"It makes no sense for us to go into businesses that are occupied by existing leaders," he said. "We want to solve new problems in the payments space."

He said the system is targeted at advertisers and not general consumers, but did not elaborate further on how it differs from PayPal.

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