PayPal is offering its payment service on a white-label basis to Apple, according to Re/code. The information is based on conversations between three payments industry executives and Re/code.

Rumors of Apple's interest in mobile payment have been rife since the publication of its patent applications for communication technologies that could be used in retail locations.

Apple could use its iTunes user base and payment information to create mobile wallets. It could also use its Touch ID sensor technology, available on iPhone5, for authenticating shoppers, Re/code said. Touch ID would allow consumers to use their fingerprint to authorize mobile payments.

Eddy Cue, Apple's senior vice president of Internet Software and Service, said in a January 2014 conference call that the company is intrigued by the concept of fingerprint-enabled payment through the iPhone's Touch ID sensor, reports the Daily Telegraph. "The mobile payments area in general is one that we've been intrigued with, and that was one of the thoughts behind Touch ID," Cue said in the Daily Telegraph. "But we're not limiting ourselves just to that."

The demographics of Apple's customers and the amount of e-commerce going through iOS devices compared to other devices means there is a big opportunity on the platform, Cue added.

Two of Re/Code's sources said it's unlikely Apple would see a need to partner with PayPal, though they did not rule out the possibility.

Learn more about handsets and devices.