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iTunes now accepts PayPal

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On December 11, 2004, 5:45 PM EST

In a move that certainly makes a lot of sense, Apple's popular iTunes music store is now accepting payments through Paypal. Until now, the Apple store accepted credit cards, gift certificates and account balances as forms of payment.

EBay is seeking to make PayPal the common currency of the Internet, and the addition of iTunes, the biggest online music store, is a feather in its cap. PayPal is focused on growing its eBay business, overseas transactions linked to eBay, as well as what it calls its "off-eBay" business."

In the third quarter, PayPal processed $4.6 billion in payments, an increase of 52 percent from the $3.0 billion in the year earlier quarter. That figure includes merchandise purchased on eBay, the largest online auction site.

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