See this RED HERRING article.
....Google CEO Eric Schmidt has said Google Wallet will not be a PayPal clone. Unlike PayPal, analysts speculate that transactions would be limited to ones between businesses and consumers. The service would probably not allow more personal uses, such as a friend sending money to a friend. But like PayPal, it would likely be a stored value account.
Dan Schatt, an analyst with Celent, a research and consulting firm, predicts the search giant will release the service by the end of the first quarter, if not for the holidays.