While that doesn't necessarily help the speed of the transaction—Google Checkout is, after all, is still a fairly convenient method for purchasing applications—it does help Google attract users who, for whatever reason, have simply opted not to use Google's single payment service for their purchases.
Integrating PayPal would open up Android phones to the service's 87 million active accounts, which would surely go a long way toward increasing the propensity of a user to pick up a new application on a whim—especially if the PayPal service is integrated into the mobile operating system in a similar style to how purchases work on Apple's App Store.
"As an Android user, I'd certainly be more inclined to buy apps from the Android Market if PayPal was a payment option," writes Intomobile's Marc Flores. "Make it a one-click feature and perhaps I'll even go nuts loading my EVO 4G with new applications."
Neither PayPal nor Google are discussing the alleged talks, which may or may not lead to a finalized deal between the two companies, reports Bloomberg.
According to the research firm Gartner, Google's Android operating system is now the most popular piece of smartphone software in the United States. Sales of Android-based devices rank third of any smartphone in the world in 2010 thus far, nestled behind RIM and Symbian's respective sales of 11.2 million and 22.3 million units. Apple's iPhone sales rank fourth at 8.7 million, or a market share of 14.2 percent to Android's 17.2 percent.
It's quite a turnaround from this same time period one year ago, when Apple commanded 13 percent of the market to Android's 1.8, and Symbian carried the majority market share at 51 percent. Microsoft's Windows mobile phones continue to lag with only 3 million units sold in 2010, a market share of a paltry 5 percent.