ITunes and PayPal has announced a deal that will mean users of the download music store in America will be able to spend their PayPal money downloading tracks.

As an added incentive, PayPal is also offering the first half million customers who sign up and then pay with PayPal before the 31st March 2005 five free songs.

“We are thrilled that PayPal users can now buy their music on the world's number one online music store," said Todd Pearson, general manager of PayPal's Merchant Services.

PayPal, an eBay Company, was founded in 1998, has more than 56 million accounts and is available to users in 45 countries around the world.

Unfortunately there is no word on whether this payment option will be coming to the UK or other European stores.