Google Checkout Could Change the Game

Google's(GOOG) latest punch comes in the guise of harmless holiday cheer.

On Tuesday, Google announced that it would offer its Checkout service for free to merchants through 2007, extending by a year the amount of time it would give away the service.

The move takes to another level Google's already aggressive efforts to push its Checkout service, which allows users to purchase items from one of thousands of online merchants in just a few clicks.

At the onset of the holiday shopping season, Google announced a program to offer steep discounts to consumers as an incentive to use the service. While this latest push may cost Google a substantial chunk over the year, it will also add even more kick to the search giant's attempt to bring more merchants into its fold.

While it may not seem earth-shattering -- Google claimed the giveaway was simply part of some holiday cheer when announcing the launch on its blog -- this shrewdly calculated drive could have a major impact on Google's bottom line. And it could be a game-changer for Internet companies including eBay(EBAY), Amazon.com(AMZN) and Yahoo!(YHOO).

Facile and Free

Growing the popularity and appeal of Google's search and advertising platform is the most direct benefit that could stem from Checkout picking up speed.

Checkout makes it easier for users to search, find and buy what they are looking for, says Ben Ling, product lead for Google.