Samsung is reportedly looking to add a fingerprint sensor to its next-generation smartwatch to enable payments via PayPal, according to a new report.

Biometric technology has already become quite a big part of the smartphone world, with several high-end handsets now boasting fingerprint readerz to boost security and facilitate payments.

With Apple now incorporating its own mobile payment system, called Apple Pay, into its new smartwatch, Samsung and PayPal are reportedly looking to team up and deliver with such a solution of their own to be used in future smartwatches from the South Korean tech giant.

The Apple Watch will launch next year with Apple Pay on board, aiming to make it easier for users to make secure payments. It makes sense for Apple archrival Samsung to be working on its own mobile strategy, and teaming up with PayPal could give it a significant advantage.

The news of this collaboration comes from Business Korea, which reported that the two companies would also make use of Synaptics' technology for fingerprint authentication.

"We are currently developing the smart watch equipped with fingerprint identification technology and relevant solutions through cooperation with PayPal, the world's most renowned financial transaction service company, as well as Synaptics, a global company specialized in biometric verification," a Samsung executive told Business Korea. "By the earliest, the third generation smart watch to be released early next year will have this new system in which payment is authorized immediately when users identify themselves through biometric sensors such as fingerprint or login."

In other words, while the current generation of Samsung smartwatches doesn't support biometric technology, the next generation will come with fingerprint sensors on board. There's still a possibility, however, for existing smartwatches to make use of whatever solution Samsung develops with its partners, by pairing with the biometric sensor of a connected device.

From Samsung's part, it may seem as yet another way to combat Apple, as the fierce battle between the two companies is no secret. For PayPal, meanwhile, this collaboration could mark a significant step forward toward dominating mobile payments, especially since other services such as Square have emerged and started to eat into its share. With Apple Pay slated to kick off in apps and retail stores as soon as next month, PayPal is likely feeling even more pressure to maintain its relevance, and a collaboration with Samsung and Synaptics may be just what it needs to stay on top.

With everything still in the rumor state, however, it is highly advisable to take this news with a hefty grain of salt. We'll keep you up to date as soon as more information becomes available, so stay tuned.