Is Google about to introduce a PayPal killer? We’ll find out this week, if an analyst prediction is correct.

Google executives have said that they are working on an online payment service – dubbed GBuy by some analysts – that will allow users to more quickly buy products from online advertisers. But the question remains about the timing of the product’s release and whether it will challenge the industry leader, eBay’s PayPal.

In a recent research note, Jordan Rohan, an analyst with RBC Capital Markets, said Google was planning to introduce GBuy Wednesday.

Eric Schmidt, Google’s chief executive, has gone to great lengths to say that the service is unlike PayPal and therefore won’t compete with it (eBay is a big Google advertiser and probably wouldn’t appreciate a rival service).

The idea is to eliminate the need for consumers to disclose credit card information to merchants – reducing the fear of fraud – as well as speed up the purchasing process.

Consumers will fund a GBuy account with a credit card. They could then use the account to buy products from participating advertisers on Google’s search engine.

Like PayPal, merchants would pay Google a small transaction fee for completed sales. Potentially, merchants would also get a logo on their Google ad such as “trusted GBuy merchant” that would be like a seal of approval that would lead to a higher rate of sales, Rohan said.