Rumors circulating the web over the weekend suggest payments platform PayPal could be working with Google in a bid to bring native support for payments over the service to Google's Android mobile operating system.
The deal -- which could see the integration of PayPal into Android natively available by the end of the year if it gets the go-ahead from both companies -- was first reported by Bloomberg, who say the talks between the companies are "continuing" and no deal has yet been struck.
Currently Android users are forced to utilize Google Checkout -- Google's own rival payments platform -- or a credit card to purchase applications on the Android Marketplace. If the rumored deal were to go ahead, it's believed users could also be able to natively make these purchases with their PayPal account funds instead.
While PayPal already offers an Android application available on the Android Marketplace, users cannot currently make Android application purchases through it or integrate it with Google Checkout.
PayPal support would allow developers to be paid from yet another source -- and could potentially allow Google to offer paid applications in more places around the globe, including Australia, where the company doesn't currently allow developers to submit paid apps.
Google and PayPal have so far refused to comment on the speculation.