I use PayPal a lot. In recent years it’s become a primary form of payment for me both on and offline, but one place I can’t use PayPal so easily is to purchase apps on my Android device. That may soon change, as it’s been rumored that PayPal and Google are in talks over using the now-ubiquitous payment technology in the Android Market.
Bloomberg is reporting that people familiar to the matter say PayPal is close to including its payment service within the Android software, making it easier for users to purchase apps and providing app developers another way of getting paid. It may also help Google’s fight with Apple over their respective app-store ecosystems. Android devices are already outselling iPhones, but Apple still dominates the app space.
Apple’s prime advantage is that iTunes users can buy apps with one touch because their payment information is already stored. Google offers similar features through its Checkout service, though it isn’t as popular as iTunes or PayPal, creating hassles for new users. By adopting PayPal, which has 87 million active accounts, Google may attract more paying customers. In addition, PayPal has put heavy emphasis on mobile as of late, and that innovation could play well for the future of the Android Market.