PayPal is currently in talks with Google to allow Android smartphone owners to purchase applications from the Android Market using the online payment service.
Citing sources familiar with the matter, Bloomberg reported that PayPal could be soon integrated with the Android operating system to enhance the level of mobile payments on the Android platform.
Currently, Android owners use credit card and Google Checkout to buy applications online.
The inclusion of PayPal in the Android ecosystem will allow Google to attract developers to its platform by offering them an easy way to get paid for their applications. Currently Apple's App Store has 225,000 applications compared to 70,000 applications available on the Android Market.
Both the companies are set to benefit if the deal comes through. Owing to the rising popularity of the Android platform, PayPal has a chance to enhance its user base and its presence on mobile phones, and thanks to PayPal's simple one-click payment service, Google will be able to attract more developers and paying customers.