Paypal counter Google Checkout with rival service

Ebay-owned, online payment service, Paypal will launch a virtual payment system that will allow sites that do not use current Paypal as one of their payment options to accept it.

The service called Paypal Secure card will automatically direct the user to an e-commerce landing page where he or she will be able to complete the transaction.

The move comes after Google launched its successful Checkout system and managed to recruit several e-tailers.

Paypal has partnered with MasterCard to provide the service to Non Paypal registered merchants.

Since last year, more than 3 million Paypal customers have tested the Secure card solution successfully to the satisfaction of Paypal.

Apart from improving security (and reducing potential financial risks) by outsourcing the final step of a transaction to Mastercard, Paypal also wants to get more business customers who are risk-averse and would rather talk to a house-hold name like Mastercard.

Unlike Skype, the other company that Ebay purchased, Paypal has been consistently performing well with overall Paypal transactions growing to USD 12.22 bn, a full 34 percent increase.

The service works on Windows computer running either Internet Explorer or Firefox. It is not known whether Apple's Mac OS platform or Linux will be supported anytime soon.