Apple and PayPal today announced that the iTunes Music Store in the US will now accept PayPal for purchases of music downloads, audiobooks and gift certificates.

As of today, US customers can pay for their songs using PayPal's virtual wallet service. This lets customers pay using a credit card, bank account or stored account balance. The first 500,000 customers to open a new iTunes account in the US using PayPal as payment before March 31, 2005, will receive 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's virtual wallet offers iTunes customers the convenience of paying in the way they prefer."