PayPal Sues Google, Claims Theft Of Trade Secrets

The day after Google announced it was entering the electronic payments space, PayPal, which has pretty much had the business to itself, fired back.

PayPal has filed suit against Google and two executives, who used to work for PayPal, accusing them of stealing trade secrets. Google responded, saying people have a right to seek better jobs.

Google is teaming with several other companies, including Citibank, Mastercard and Sprint, to provide a mobile payment service of its own. It will allow consumers to pay for goods and services at the point of purchase, using only their Android mobile phone.

Available this summer

Google's new payment system, will be available this summer, the company said. Google Wallet will support payments with two payment solutions: a PayPass eligible Citi MasterCard and a virtual Google Prepaid card. Most people who already have a PayPass eligible Citi MasterCard can simply add it to Google Wallet over the air, using First Data’s service manager service. Or, they can fund the Google Prepaid card with any payment card.

Google Wallet is built to work with the fast growing MasterCard PayPass network—a merchant point of sale service that enables consumers to tap to pay. As a result, Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.

PayPal's payment system, which was one of the first to gain wide acceptance, has yet to go mobile, through the company, a division of eBay, has reportedly been working on a mobile payment system of its own.