Google is offering merchants free use of its online payment service as it squares off against eBay's market-leading PayPal.
The Internet search giant introduced Google Checkout in June, with sweeteners such as free ad credits for merchants. In November, it began offering rebates to consumers, $10 off $30 purchases. PayPal quickly matched the offer.
Wednesday, Google ratchets up the pressure by dropping merchant fees through 2007.

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