Could make a big difference to paid-for Android app space.
At present Google pushes users towards credit card payment or its own Google Checkout system, which has struggled to attract users.
PayPal, meanwhile, has over 210m registered users of which 81 million are active. It's the de facto payment system on eBay and is also the choice of RIM for its BlackBerry App World market.
Now, industry rumours suggest PayPal could be offering on touch payments on Android by the end of the year.
It could be an important milestone for the platform, which has overtaken iPhone in hardware units but is still lagging a long way behind in the app space.
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