Earlier this week, Apple CEO Tim Cook hinted that his company was working on a mobile payment system that works with Touch ID. On Thursday, Re/Code said that eBay’s PayPal would like to play an important role in this.

Three payment industry executives say PayPal “is essentially willing to white-label parts of its payment service to be used in an Apple mobile payments system — anything from fraud detection to back-end infrastructure, even possibly down to the processing of payments.”

Re/Code notes that PayPal might face a “scary proposition” if they cannot “figure out a way to partner with Apple.”

The Wall Street Journal recently reported that Apple was planning to take on PayPal, Square, and other competing products with its own mobile payments system.

As Aldrin Calimlim noted at the time:

Should it launch its very own mobile payments service, Apple will probably be incorporating its Touch ID fingerprint reader and iBeacon location sensor technologies. And of course, it will be taking full advantage of its impressive base of more than half a billion registered iTunes Store customers and more than half a billion iPhone and iPad users.

It might make a lot of sense for Apple to partner with a company like PayPal to get its mobile payment system off the ground. Partnering isn’t usually how Apple does things, however, so who knows where this may go.

We’ll continue to follow this story.