Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Exclusive: Fabius warns of further sanctions against Russia

    Read more

  • Experimental Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • IMF stands behind Lagarde amid French corruption probe

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Suriname leader’s son pleads guilty to courting Hezbollah

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    Read more

Business

PayPal, eBay file lawsuit over Google Wallet application

Text by News Wires

Latest update : 2011-05-27

PayPal and eBay filed suit against Google Friday for allegedly stealing trade secrets for its newly released Google Wallet, a free mobile application that transforms a smartphone into an electronic wallet designed to replace plastic credit cards.

AFP - Google faced a lawsuit on Friday hours after it unveiled a free mobile application that turns a smartphone into an electronic wallet and is designed to replace plastic credit cards.

PayPal and eBay filed a lawsuit in a California state court Thursday charging that the Internet giant tapped into trade secrets for its newly released Google Wallet. Google did not immediately respond to the allegations.

PayPal spent three years trying to work out a deal in which it would handle payments for Android smartphones, only to see Google scuttle the talks and hire its lead negotiator Osama Bedier, according to court documents.

Bedier worked at the eBay-owned online financial services unit as a vice president of platform, mobile, and new ventures until being hired in January by Google.

He played a central role at Google's official unveiling in New York with financial partners Citibank, MasterCard and First Data and telecom ally Sprint, saying Google Wallet is being field tested and will be available this summer.

Google Wallet will initially work with Google's Nexus S 4G smartphone from Sprint, the third-largest US wireless provider, and will eventually be expanded to other phones equipped with near field communication (NFC) technology.

An NFC chip in a phone allows a user who has entered his or her credit card details to "tap-and-pay" for purchases at a checkout register equipped with the PayPass system from CitiMasterCard.

Customers can also use a Google Prepaid card to pay for purchases and take advantage of Google Offers, the Mountain View, California-based company's online discount coupon program.

The company said Google Wallet will be accepted at more than 124,000 US merchants at launch and more than 311,000 around the world.

Stephanie Tilenius, Google's vice president for commerce and payments, described Google Wallet as the "next generation of mobile commerce."

"We're building an open commerce ecosystem that for the first time will make it possible for you to pay with an NFC wallet and redeem consumer promotions all in one tap, while shopping offline," Tilenius said.

"We are looking at expanding internationally, Europe first and then Asia."

The PayPal lawsuit contends that Tilenius helped Google poach Bedier and named both executives and the Internet company as defendants in a civil case alleging misappropriation of trade secrets.

Mobile payments are being tested or used in a number of countries already, notably France and Japan, but Google Wallet will be among the first to bring NFC technology to stores in the United States.

NFC technology uses short-range, high frequency wireless to enable the encrypted exchange of information between devices at a short distance.

Three of the largest US wireless carriers -- AT&T, T-Mobile and Verizon Wireless -- announced in November that they were teaming up to build a national network called "Isis" to allow for payments by mobile phones.

They said they expect to introduce the service during the next 18 months.

Then-Google chief executive Eric Schmidt said shortly before the Nexus S smartphone hit the market in December that he expects tap-and-pay technology to eventually replace credit cards.

Forrester Research analyst Charles Golvin said it remains to be seen, however, whether Google can change the payment behavior of consumers, and it will take time and more widespread adoption to find out.

"Relying on an installed base of phones that is today indistinguishable from zero, a single payment system, a single card issuer, and a modest network of merchants capable of accepting these phone-based payments means that the near-term impact will be negligible," Golvin said.

Andrew Eisner, director of community and content at Retrevo, agreed that "the big question is how consumers will warm up to NFC."

"So far it looks like consumers are a bit skeptical," Eisner said. "They worry about security and privacy issues."

Google said it has built a number of security systems into Google Wallet including the need for a PIN number and credit card encryption. If lost, the payment system can be disabled with a phone call.

In addition to allowing for mobile payments, Google Wallet lets consumers pay using gift cards and redeem promotions such as discounts or coupons.

"Google Wallet will start with offers, loyalty and gift cards, but some day items like receipts, boarding passes and tickets will all be seamlessly synced to your Google Wallet," Google said in a blog post.
 

Date created : 2011-05-27

COMMENT(S)