NYT offers an interesting update on Google Checkout.

Here are my highlights: Aggressively pursuing merchants, Google Checkout waived transaction fees in November (through the end of 2007), and it has also been Checkout users $10 off $30 purchases at many e-commerce sites and, in some cases, $20 off $50 orders. In fact, Google is prepared to lose money on every transaction for the next year. Why?

They see long term payoffs in expanding their base of advertising.

 “It’s a way to incentivize more merchants to join our network,” said Benjamin Ling, a product manager for Checkout. “We want everyone who sells online to be a Google advertiser.”

The advantages for merchants include current savings, and a model that helps merchants generate more sales leads by increasing click-through rates.

Read the article at NYT.