Google payment, Google video

Is Google bent on dominating everything?  And I don't mean its $304 stock price.

Bambi Francisco says that Google will launch a payment system that would compete with eBay's Pay Pal. 

Charlene Li at Forrester thinks it's most likely a micro-payment system, a Google Wallet, that would give you a subscription pass to access premium content on multiple sites.

Back to Bambi who says Google would be better off with local classifieds, a fine companion to its local service listings.
When I look at the market, I think Bambi might be right. 

Online classifieds were $1.7 billion in 2004
Newspaper classifieds were $16.6 billion.  Most of them local.

Charlene Li explores some business model options for Google video which began accepting uploads in April.  John Battelle confirms that Google will be launching an online video playback feature based on the open source VLC media player.  Most likely the video player will be integrated with their payment program for those videos that are not free.    Soon, independent video producers will have an "alternate universe" for video distribution and playback.