If I use the PayPal gateway in my iPhone app, will Apple approve it?
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Generally speaking, yes, your app will be rejected. According to section 11.2 of the App Store Review Guidelines for iOS (Login Required) any app that doesn’t use In-App purchase will be rejected.
Additionally, note that any purchase of real world goods or services is not allowed as per section 11.3. I suggest reading the whole document, or at least section 11 (and 20 if it’s a charity app). That should give you a pretty good idea of what’s allowed and what’s not.