PayPal shows off phone-to-phone NFC payment system for Android
PayPal is hoping to replace old-fashioned credit cards and even older-fashioned cash by allowing you to pay with your smartphone.
The EBay Inc.-owned online payment company showed off its new phone-to-phone payment mechanism on Wednesday, including a video that shows how two users can exchange funds by touching their phones together. The system uses so-called NFC, or near field communications, a short-distance radio technology that will be built into many upcoming handsets.
When PayPal's NFC feature comes out later this summer, it will initially only work with Google's Nexus S -- the only Android phone now available with built-in NFC. But more NFC-enabled Android phones are due out soon.
In May, Google previewed its Google Wallet system, intended to allow users to pay with smartphones at many retail outlets. That will also be available this summer.
-- David Sarno