Reports related to the daily deals industry in general haven’t been incredibly flattering in recent weeks, but it looks like the future might be bright in this space for Google.

As you may recall, Google tried to buy Groupon last year, but Groupon turned down the offer (reported to have been in the ballpark of $6 billion). It’s been a somewhat turbulent year for Groupon, though the IPO is supposedly back on track. The company is also testing the e-commerce waters, which could end up being huge for the company.

But despite come competitors pulling back a bit, the fact remains that there is a lot of competition in this space, and that includes a product from Internet giant Google, which just launched Google Wallet – an important product for continued success of Google Offers.

According to a report from Yipit, Google Offers is already doing pretty well in the few markets it’s available in. “Google Offers didn’t do particularly well in August – total revenue dropped 23% from July despite a 22% increase in its total number of deals,” the firm reports. “However, Google’s Daily Deal product has radically improved in September. Through just the first three weeks of the month, Google has already surpassed last month’s total revenue of $265k and is on track to more than double this figure by month’s end.”

“Google isn’t running significantly more deals in these markets – deal performance is markedly improving,” says Yipit. “Through the first three weeks of September, revenue per deal is up 160% and vouchers sold per deal has increased five-fold.”

Google did plug Google Offers on the Google homepage recently. It also launched in more markets and acquired DailyDeal. Still, the company is running “far fewer” deals in any given market than Groupon and LivingSocial, according to Yipit, who says Google is closing in on LivingSocial on average revenue per deal, and is selling more voucherws per deal than both LivingSocial and Groupon.

On Friday, Groupon CEO Andrew Mason announced that COO Margo Georgiadis is returning to Google, which is actually where she used to work.