The Wall Street Journal is reporting that Google is to test it’s long-awaited “Wallet” service, now renamed GBuy, an online payments service.

“Web-search giant Google Inc. is set to introduce a test version of its GBuy online-payment service as early as this week, according to people briefed on the situation. The service, which would challenge eBay Inc.’s PayPal online-payment service and others, has been expected for several months. To attract consumers, Google plans to offer an unspecified rebate to people who complete online purchases using GBuy, according to one person briefed on the company’s plans.”

The system will switch buyers from the normal checkout procedure into a GBuy channel if the merchant accepts the system and the buyer chooses the option. Searches on products will indicate which merchants accept payments through GBuy.

“The expected arrival of GBuy presages a shake-up in the online-payments market. Until now, consumers have only had payment options such as PayPal, which lets consumers pay using their credit card or a bank-account transfer without disclosing their account information to the merchant or individual receiving the payment. ”