We recently reported on Google’s announcement of its Offers service, a location-based deal service that has special offers and deals delivered to your inbox. It’s a lot like Groupon, but with Wallet and Checkout integration, Google has a strong advantage.

Google Offers will be launched in Portland and roll out gradually to other cities. Once you’ve signed up, you’ll receive offers via mobile notifications based on location information, not just email. Potentially you could be strolling through a shopping center, receiving discounts on your phone for nearby shops while you’re there.

Google has just published a video on YouTube that details how Offers will work. Take a look for yourself:

According to the video, once you’ve signed up and selected your location, the aforementioned email will come once a day showcasing one particular deal, just like Groupon. You can then click through and print the voucher, take it to the location and make your purchase.

You can sign up to be notified when Offers launches in your city if its in the list at the Google Offers site. Unfortunately, there’s no indication that cities outside the United States will see Google Offers at any point in 2011.

We’re a long way from seeing whether Google can topple Groupon, but it’ll be an interesting battle to watch. What we do know is that Google claims in its Offers for Business video to take all of the heavy lifting off of the business owner, allowing the business to simply focus on the customer: