Google Wallet launches as PayPal sues over tech secrets

27th May 2011 | 08:08

Google Wallet launches as PayPal sues over tech secrets

Mobile payments causing fracas

As expected, Google launched its NFC-payments scheme called Google Wallet an event in New York last night and, to celebrate, PayPal has launched a lawsuit against Google.

PayPal claims it schooled Google in mobile payments while negotiating a deal for the search giant to use the PayPal system on Android phones, but that Google took all that lovely information and launched its own independent product.

PayPal's lawsuit is all about trade secrets – corporate espionage! – surrounding an allegation that Google's vice president of payments, Osama Bedier, gave away confidential PayPal tech secrets which he was privy to as his time as a Paypal exec.

Incestuous

Google also has another ex-PayPal-er on its books, Stephanie Tilenius, Google's vice president of electronic commerce, who PayPal claims also broke terms of her contract by luring Bedier over to the Google-side.

The suit reads: "PayPal provided Google with an extensive education in mobile payments. Bedier was the senior PayPal executive accountable for leading negotiations with Google on Android during this period.

"At the very point when the companies were negotiating and finalizing the Android—PayPal deal, Bedier was interviewing for a job at Google — without informing PayPal of this conflicting position.

"Bedier's conduct during this time amounted to a breach of his responsibilities as a PayPal executive."

The PayPal lawsuit also lists a further 50 unnamed defendants and, if nothing else, puts a dampener on Google's big launch.

Google Wallet is initially available only on the Google Nexus S 4G in the US, although Google has plans to roll the app out to other Android handsets. There's no word yet on when or if the UK will enjoy the fruits of Google Wallet.

Via The Guardian

PayPal Google NFC smartphones mobile payments Google Wallet
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