Jay Freeman, the developer of Cydia (a package installer/manager for the iPhone and iPod Touch), has decided he wants to open a jailbroken counterpart of the Apple App Store. Many developers turn to Cydia if they are put down by Apple. According to one of Jay’s Twitter updates, the Cydia Store will initially use Amazon Payments but will also add PayPal by sometime next week. This is probably because PayPal is greatly used by people around the globe.

Cydia has been the saving grace for many developers who have been rejected by Apple’s stringent requirements in putting an application for sale on the official Apple App Store. If they are rejected, Cydia welcomes them with open arms.

It has also been reported that Freeman already hired a lawyer just in case Apple decides to pursue legal action.

The main goal of the Cydia Store is to simplify the payment system. Previously, the Cydia Store lets each developer decide how it wants to collect payment from someone who bought an application.

More information elsewhere:

• Cydia Store Announced, Coming Soon (Apple iPhone Apps)