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Android news: PayPal to sue over Google Wallet

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Android news: PayPal to sue over Google Wallet

PayPal is taking legal action over Google’s electronic wallet scheme, alleging that it poached two of the online payment processing company’s employees specifically to gain access to trade secrets.

Dubbed Google Wallet, the project harnesses Near Field Communications (NFC) tech to allow Android phone users to pay for low-ticket items by swiping their handsets over a reader.

However, a matter of hours after the search giant lifted the lid on its scheme PayPal filed a suit which could jeopardise its future before it has even launched.

PayPal claims that its former exec Osama Bedier was enticed to Google with the express purpose of gaining access to PayPal’s plans for future payment tech and trade secrets. These are purported to be front and centre in Google Wallet.

Google has yet to respond fully, claiming that it hasn't received a copy of the complaint.

News of developments comes amid predictions that contactless payments with smartphones will surge in popularity this year, after the feature was one of the key USP's of the latest crop of handsets running Android 2.3.

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