Rumor: Apple Working on PayPal Competitor

Could Apple be giving you a new way to spend even more money.

Many of Apple's projects and products are things shrouded in secrecy. The only way most of us learn about them is through leaks, rumors and (educated) speculation.

The latest rumor about what Apple is up to seems a little outlandish, but not impossible. The Business Insider cites an anonymous Wall Street gossiper as saying that Apple is plotting a new payment service that could rival that of PayPal.

The reasoning behind the speculation is that Apple already has the iTunes system whereby consumers use credit cards and other prepaid payment forms to pay for music, movies, TV shows and applications. It'd be possible to use that same infrastructure to accept payments for third party companies – with Apple pocketing a cut of the transaction, of course (hopefully with no added "Apple tax" for the consumer).

Skeptical? So are we, but with Apple on the upswing even in a recession, the Cupertino company could have good reason for high ambitions.