eBay and Google are reported to be in talks over a possible integration of the Android app marketplace with Paypal’s payment processing system. The rumor, which both companies have not confirmed so far, will allow Android phone users to make app purchases using Paypal. At present, this is only possible over a credit card or Google’s payment processing system – Google Checkout.
Paypal is one of the leading online payment gateway systems that is however often criticized for its extraordinarily high charges on transaction fee. While many users would any day prefer a Paypal payment over possible direct credit card checkout (which can lead to possible wireless thefts), it is not clear how customers will view Paypal vis-a-vis Checkout in a Google-controlled environment. Also, it is not clear if Google stands to make a commission on every transaction made via Paypal over the Android marketplace.