I talked with a friend from Google when I was in San Fran two weeks ago about Google’s Checkout program (see, I can keep an embargo date). I’ve had bad experiences with Paypal, so this couldn’t come soon enough.

Anyway, a few reasons why I love Checkout:

1. 2% and 20 cents per transaction. Compare that to the variable 2.9%-2.2% that Paypal charges (the only way to get the adverised “as low as 1.9%” is to sell more than $100k through your site) and 30 cents per transaction. Oh, and did I mention that if you use Google Adwords and spend $10, they waive the transaction costs?

2. They have a great incentive for buyers to sign up and try it: $10 off a purchase of $20 or more. Of course, it’s only through select retailers (see this page for the list), but hell, it’s only a week old.