Google CEO Eric Schmidt confirmed that Google is developing an online payment system.

"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," Schmidt told Reuters.

In an e-mailed statement, Schmidt told internetnews.com, "We are building products in the area to solve new problems in ecommerce."

The confirmation followed speculation by news media that the search goliath was close to launching something that might be called Google Wallet.

Read full article: internetnews.com