Only moments after Google unveiled the Google Wallet Near Field Communication mobile payment service on Thursday, eBay and subsidiary PayPal filed a lawsuit alleging the project’s team lead stole trade secrets to create the service.
Google showed off the new Android app that allows mobile payments at an event in New York City Thursday. The Google Wallet uses virtual cards, such as a Google Prepaid Card, to ‘tap to pay’ via NFC technology.
CitiBank will participate as an early partner, as the service will support all Citi MasterCards. Google Prepaid Cards can be topped up with any existing credit card. The service hopes to create loyalty cards, gift cards, receipts, boarding passes, tickets and even keys with the app.
The app will launch on the flagship Nexus S 4G on the Sprint network. MacNN reported that, within hours of the launch of Google Wallet, eBay sued the search engine giant for allegedly using the company’s trade secrets to build the technology.
It must be said that the virtual payment solution, Google Wallet does resemble PayPal in several aspects. Although Google has yet to respond to the accusations, it is believed if the concerned parties are unable to reach an agreement and the law suit holds up in court, the service will be greatly threatened.
Apple is also expected to enter the race with its own NFC payment solution. Reports differ about whether the iPhone maker will add NFC functionality to its next generation smartphone. It is reported that Apple is planning to utilize NFC with a “unique twist” beyond just e-wallet functionality.