February 9, 2007......... Can Skype and Paypal be integrated securely?

In the posting two weeks ago, I said that the problem of ambiguous presence in Skype occasioned by lazy handling of multiple logins would void the possibility of integrating Paypal for useful purposes. That I think was a mistake. In fact the integration of Paypal into Skype could be precisely the tool that fixes both the problem of ambiguous identity and of multiple login; and incidentally propels both Paypal and Skype to new unimaginable heights of popularity.

Consider this scenario. We know that Paypal accounts has excellent controls for identity theft, so let's say we were able to marry a Paypal account and a Skype account in a 1:1 pairing. Now when you log into your Skype you can optionally log into your Paypal account (with your separate Paypal password) and suddenly your Skype login has a confirmed identity that can be seen by other Skype users. Perfect. Secondary logins not only don't have that verified identity, so Skype turns off verified identity.

Consequences:

• The first benefit is fixing Skype's problem of ambiguous presence.
• It also solves the problem of undetected extra logins because if your status as a verified Skype ID is not available you know you are not the only one logged in under your ID.
• If the Paypal password were also used to process password change requests, then Skype users would have much greater assurance that their passwords could not be easily changed without authorization.
• Paypal users would have a way of transferring money directly and instantly to another Paypal user via Skype. Imagine walking up the cash register in a store, pulling out your handheld Skype device and paying for your merchandise.
• Money transers, like everything else in Skype, would be totally encrypted, conforming to the same secure standards of Paypal transactions with the web interface.
• Paypal users would have an incentive to get a Skype account.
• Skype users would have an incentive to get a Paypal account.
• Both Paypal and Skype would incentivize users to buy things on eBay.

Is this a dream, or are there actual eBay plans to implement this? I don't have a clue. I also concede that the scenario outlined above is a bit oversimplified.