Google have announced that as of November 20th, Google Checkout will no longer be supported and therefore will in effect be closed down. Instead, they are looking to increase, improve and expand their Google Wallet services. It was initially launched in 2006 around the same time that competitors such as PayPal were being launched, but was marketed much less aggressively. This meant that more people chose PayPal as their online payment system.
The crossover from Google Checkout to Google Wallet will not adversely affect individuals selling digital goods, or merchants who sell via Google Play and other marketplaces. However, it sets to be more problematic for merchants who sell physical goods as they will need to find a third party alternative to take care of their payments.
The demise of Google Checkout confirms that PayPal has asserted its dominance in this sector and continues to be the market leader.