There is a rumor saying that Google will announce that Paypal will be integrated in the Android Market. The Android Market needs all the help it can get to help developers better monetize their apps. Paypal can bring access to paid apps for a lot more countries, and it can also bring in-app payments, which should make developers more interested in the Android platform.
Google tried to get developers to use Google Checkout, but unfortunately that adoption is too slow for both developers who want to sell paid apps, and also for people who want to pay for apps. Not that many users have Google Checkout. Another thing that Google Checkout is lacking is a long list of countries where it's available and where people can take advantage of it. Paypal offers all that, which should help developers make more money on the Android platform than they used to.