Online payment specialist PayPal could soon be integrated into the Android smartphone platform for app purchasing, it has been speculated, amid rumours that Google has made a formal approach to the eBay-owned service.
Details of the proposed deal emerged in an interview with a source close to the negotiations conducted by the Bloomberg news agency.
The anonymous tipster claimed that the arrival of the payment method would prove financial a spur to would-be developers and help Android compete with the massive range of titles on offer at the Apple App Store.
He said: "By adding PayPal, Google would give app developers another way to get paid, potentially making them more likely to create software for Android."
The Google Checkout service is currently used to pay for premium apps on the Android Market, but PayPal's superior reach is likely to encourage more consumers to make purchases, channelling greater revenues through to developers.
Android-based smartphones have overtaken the iPhone in the sales charts, but with roughly 70,000 apps on the Android market, many of which are free, it is still a long way behind Apple's software market which currently offers close to quarter of a million titles.
There are 87 million people with a PayPal account worldwide and the firm is increasing its user base at the rate of one million per month.
Neither PayPay or Google has commented on the conjecture.