One of our readers has let us know that, as someone who has his iTunes set up with Paypal, he is unable to make purchases in Apple’s new Cards app. When trying to give Apple his money,

Problem

• Apple’s Cards apps asks you for credit card CVV even though your iTunes account is associated with Paypal and not a credit card.

Work around

• Update your account with a credit card if you want to make any Cards purchase.

I suspect that Apple will fix this soon, as they are probably eager to collect your money. Any other Paypal users run into this problem?

[Thanks Jason!]

Every day, TiPb gets flooded with announcements for new and updated iPhone, iPod touch, and iPad apps and games. So every day we pick just a few of the most interesting, the most notable, and simply the most awesome to share with you!

• Galaxy on Fire 2: Join Keith in an intergalactic trek of exploration, pirates, space battles, weird aliens and romance. Big update brings new DLC content available via in-app purchase and much more! [$9.99 - iTunes link]

• PayPal: Now you can sign up and manage your PayPal Local listing within the app and use new intelligent search. [Free - iTunes link]

• Thank You Pen: Hand-written (by real people!) letters and greeting cards sent from your iPhone. [Free, with in-app purchases - iTunes link]

• Kik Messenger: Now you can send pictures from your gallery, set your profile pic from a gallery photo, block other users, and use SSL encryption to keep your messages safe. [Free - iTunes link]

Any other big apps or game releases or updates today? If you pick any of these up, let us know what you think!

Every day, TiPb gets flooded with announcements for new and updated iPhone, iPod touch, and iPad apps and games. So every day we pick just a few of the most interesting, the most notable, and simply the most awesome to share with you!

• RoboSockets: This is a juicy mix of tetris, pipes and match 3 game mechanics resulting in the truly unique gameplay. [$0.99 - iTunes link]

• Talking Gina the Giraffe: Your kids can have a fun, pet giraffe! [Free - iTunes link

• WiFi2HiFi: Turn your iPhone into a wireless audio receiver for your stereo system or audio dock. [$0.99 - iTunes link]

• Paypal: Updated to include the ability to manage fundraising campaigns and icon customization. [Free - iTunes link]

• Twittelator Pro: This Twitter app now allows you to configure your own custom URL shortener. [$4.99 - iTunes link]

Any other big apps or game releases or updates today? If you pick any of these up, let us know what you think!

It seems a security hole in Paypal’s iPhone app has been discovered that would allow hackers to access user’s Paypal username and passwords over Wi-Fi. The “man-in-the-middle attack” let’s the hacker come between the user input information and Paypal’s servers. Although this is dangerous, it does require the hacker to be on the same Wi-Fi connection as the user in order to steal their information.

Airports, train stations, coffee shops, and other public Wi-Fi locations are the most susceptible. Paypal has issued a statement assuring if anyone does fall victim to this exploit, Paypal will cover 100% of all fraudulent charges. Paypal spokeswoman Amanda Pires had this to say -

“To my knowledge it has not affected anybody,” Ms. Pires said. “We’ve never had an issue with our app until now.”

Isn’t that how it typically works, though? You don’t have problems, until you do. And this is a large one. I’d highly suggest updating ASAP, the update is available via the App Store now.

via WSJ

Our last Macworld 2010 video! Rene and Leanna talk to Kent Griffin, Product Manager, Paypal Mobile, about their new iPhone offering that will allow developers to add easy Paypal payment integration right into their apps.

Watch along and let us know your thoughts!

YouTube link

Crazy rumor of the day, courtesy of Silicon Alley Insider, has Apple considering turning iTunes accounts into a Paypal competitor. Though they’re careful to classify it as gossip and not confirmed news (heh), it’s not beyond imagination that someone, somewhere, wanted to gauge a little public reaction to this idea.

Now, TiPb has given Microsoft a lot of negative feedback for losing focus and getting into areas they have no business getting into (pun intended). So, we have to do the same for Apple.

Does iTunes need to become a Paypal competitor? No doubt someone has to, given the more onerous sides of Paypal and the lack of Google Check Out, and still vaporish Pay with Facebook making eBay sweat enough to straighten up and behave properly, but Apple?

The link above suggests maybe Apple is interested in using the iPhone platform itself as a real-world payment system (they’ve only been doing that outside North America for years, after all), or they wish to diversify a la General Electric and this may be an easy and logical way to do it.

If it’s the former, and it works with typical Apple magic, then yes please and now. If it’s the latter then Apple should likely remember that focus, not diversification, has led them to tremendous success so far, even as their competition has floundered.

What do you think?

Frequent user of sites like eBay, PayPal, AOL, or GEICO, paranoid about security, understand terms like multi-factor authentications, and don’t want to carry a football, card-based generator, or other extra dongle around with you? If you live in the US, VeriSign has an iPhone App for you.

Verisign iPhone (VIP) Access is available for free via the iTunes App Store. If you’re using it, let us know how it’s working for you…

[via Security Now!]