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Android, PayPal Deal on Deck: Tech Edge

Expect big mobile payment deal news today as PayPal assembles developers in San Francisco.



) --


mobile moment approaches today and some await word that the


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unit has finally struck a payment deal with


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PayPal is hosting its

developers conference

in San Francisco Tuesday and as


has reported, there is a great deal of

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expectation that PayPal will join the Android Market

to provide a smoother payment system for buyers and sellers.

Going into the show, the momentum for the deal has been growing -- but not without some resistance.

Apparently there's a lot more to this story, according to an analyst who talked to a PayPal insider who recently left the company.

Google and eBay have been discussing a deal for the past three years, as it turns out. The Android people "love PayPal," but Google's Checkout team, as you might imagine, are opposed to the deal since it would undercut the in-house payment system.

But the rise of Android as one of the fastest growing mobile operating systems, even surpassing


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in the second quarter, has helped elevate Android's status at Google. Enough so, said the analyst, that it may get its PayPal deal after all.

The big issue as

Android exceeds 100,000

applications in the Android Market, is that the payment process has not been particularly easy for buyers or for the developers looking to reap the micropayment rewards of the new medium.

Android Market buyers must create Google Checkout accounts or enter credit card information to purchase apps. This is a cumbersome process compared with the one-click purchases available on Apple's iTunes or


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Making it worse, some developers like


ran into snags when it started selling SwiftKey, its predictive touchscreen keyboard. Google Checkout couldn't easily accommodate purchases in currency other than the British pound and declined thousands of transactions, according to TouchType's marketing chief Joe Braidwood.

The upshot: Google needs to keep buyers and developers happy in the Android Market as it tries to catch up to Apple in the apps race.

--Written by Scott Moritz in New York.>To contact this writer, click here: Scott Moritz, or email: follow Scott on Twitter, go to>To send a tip, email:

Editor's note: "Tech Edge" is a blog written and compiled by Scott Moritz, TheStreet's senior tech correspondent. The blog explores behind-the-scenes tech news, rumors and reports that Wall Street folks are talking about.