There is no confirmation on the matter, but some digging into the APK of the recently leaked Android Market update could herald the arrival of PayPal payments for app purchases. Multiple references are made to the online payment service in the source code of the Android Market APK. PayPal as a payment option has been a frequent request from Android users and app developers alike. We’ll have to wait and see how it pans out. Google could simply be prepping the app for a feature that may not rollout for a bit longer.
[AndroidGuys via DroidLife]