I am exploring options which would enable the user to make payments from within the Application.Right now i am aware of 2 options through which a user can make payments from wit
I can tell you, that for an in-app purchases PayPal is most definitely a no go, but you will find this out by yourself :)
Apple will only accept payment for such activities through in app purchases, no other methods of payment are allowed.
There is a workaround for these type of purchases (especially PayPal); do them not within your app but from mobile Safari. That will work and is (for now) an accepted method used by more applications.