Comment : Paypal On Android Could Kill Google Checkout

Android's rumoured partnership with online payment giant Paypal may well spell big trouble for Google's own Checkout payment service.

The potential move comes as rumours emerged of a recruitment drive by Apple that may convert the iPhone 5 into an electronic wallet.

While joining Paypal will allow Google to leverage the power of 87 millions users that trust the Ebay-owned payment service and bring App Marketplace closer to the App Store, this may be done at the expense of Checkout.

Google Checkout for mobiles was introduced back in May 2007 and mobile payments options was introduced with Chrome Checkout extension for the mobile Chrome browser in July 2010.

Paypal has already introduced an app for the Android platform and it is likely that the appeal of an open marketplace suits more Paypal's plan - compared to Apple's closed App store environment.

Ultimately though, Google may need to collaborate more closely with telecommunication firms and carriers in general worldwide to allow it to bill Android users more transparently.