Now this is getting really fierce. We already know that Android has overtaken RIM’s Blackberry and Apple’s iOS and now it seems that Google wants to dominate the apps game which the iPhone rules. According to rumors Google is negotiating with PayPal to get its payment services to work with Android Market (the apps market for Android OS). If this happens, Google would for once let in competition for its own Google Checkout (which otherwise is a PayPal competitor) but it would bring in a lot of customers for Android Market. Personally signing up a new account and setting up a credit card on file is not a very enjoyable task and then many people stock some funds in their PayPal account which they would love to use for purchases on the Android market.
Paypal has a userbase of 87 million and it is also rumored that developers would be allowed to withdraw their earnings via PayPal (wow)