Alun Williams - Google+
Tap the phones to make a payment...PayPal is enabling new NFC-based peer-to-peer payment functionality for Android users, reports Reuters. People will be able to transfer funds to each other simply by tapping two Near Field Comms-enabled devices together.
The agency reports that the payments will work through a widget that allows the sending or requesting of money. A user enters the After the phones buzz together, it says, the recipient can approve the transfer by entering a PIN number.
It writes:
PayPal's new mobile payment service will only work currently in the U.S. with the Samsung Nexus S from Sprint and T-Mobile but will expand to other Android phones that include NFC functionality in the future. The transactions utilize an encrypted token and don't access the secure element inside the NFC chip, where payment credentials reside. It appears this is set up for just peer-to-peer transfers, which is still a big part of PayPal's mobile payments business.Read the full article >>
The company said it is now on pace to do $3 billion in mobile payments this year though much of that is person-to-person transfers using the PayPal app, which don't yield much revenue for PayPal. Users do not have to pay a transaction fee when payments pull from bank accounts or an existing PayPal balance.
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