Google is now in talks with PayPal to integrate their payment services to its Android devices. If everything goes according to plan then Google Android based smartphone users would be able to purchase applications via PayPal by the end of this year. Neither Google nor PayPal were available for comment.
Currently, Android-based smartphone users buy applications via credit card or Google Checkout, another system like PayPal. PayPal already released an application enabling users to pay through their mobile phones which would run on several platforms including Android based smartphones.
Under the proposed system, PayPal would be integrated with Android just like iTunes store on Apple’s iOS devices. This will enable app developers to easily get money from their applications.
In June 2010, PayPal announced a new service called Guest Payments that would enable buyers to pay for applications through credit card without having a PayPal account.
Though Apple iPhone is the top smartphone in the market, it is losing ground to Android based smartphones. In the previous quarter, HTC, Motorola released Android based smartphones that became immensely popular among buyers.
Google's chief competition in smartphones, Apple, uses iTunes to handle payments for app purchases on its iPhone, iPod Touch, and iPad.