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Google Releases Mobile Wallet, PayPal Sues

It’s been months since we first started predicting Google’s NFC payments project. It’s not as though the company was particularly stealthy about the ordeal: they bought NFC companies, especially those working on mobile payment processing, and developed their Android OS to handle NFC tech. The details are now out, however, along with another fun announcement: PayPal is suing Google over the new application.

The Mobile Wallet App

The specs for the mobile wallet, released yesterday (Thursday the 26th), go over the key points:

  • The app is free to download and use.
  • Transactions will still require a PIN, and the application will require one too.
  • All payment information will be stored on a secure chip inside the phone. All credentials and card information can be disabled remotely should the phone be lost.
  • Initially, the app will only be available for “high-end Citibank card users,” but Google is actively seeking other partners.

The concept behind the app is by no means unique. Numerous other businesses have started field testing similar apps and devices, with names like O2, Orange, and Payments Council having NFC payment options on the market already.

PayPal’s Suit

What is there about this far-from-unique technology that PayPal would find lawsuit-worthy? Simply put, it has more to do with the “who” than the “what.” PayPal is accusing Osama Bedier, previously an employee at PayPal, of having released trade secrets to Google. They further state that he was interviewing with Google at the same time that he was working on PayPal-Google partnerships (specifically related to Android and in-app payments), creating a conflict of interest. PayPal is also calling out Stephanie Tilenius, the Google VP of Commerce, who worked at eBay until 2009. They claim that she actively tried to recruit Bedierand thus violated her contract with eBay.

The lawsuit was filed in the California Superior Court. Details on the suit, as well as commentary from Google, are not yet available.

[via the Guardian]


Category SEO
Rob D Young

Rob has been insatiably obsessed with Google, search engine technology, and the trends of the web-based world since he began ...

Google Releases Mobile Wallet, PayPal Sues

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