eBay is reportedly in talks with Google to add support for PayPal to the Android smartphone operating system. Google offers a similar service with Checkout, but with 87 million active accounts eBay's PayPal has a much broader userbase.
Users of Android phones, such as Motorola Inc.’s Droid X and HTC Corp.’s Droid Incredible, may be able to pay for apps with PayPal as soon as this year, said the people, who declined to be named because the discussions aren’t public. Customers currently pay via credit card and Google’s Checkout service.
By adding PayPal, Google would give app developers another way to get paid, potentially making them more likely to create software for Android. While Android phones are beginning to outsell the iPhone, Apple Inc. still dominates in apps. There are more than 225,000 apps available for Apple devices, compared with about 70,000 for Android.