The PayPal vs. Google Wallet war started on the first half of the year when Google launched Google Wallet that sparked PayPal to file a lawsuit against the Company along with two former PayPal executives.
Google Wallet is a mobile payments platform. This new mode of payment uses NFC-enabled Android phones that are tapped on a compatible card reader to pay for purchases.
Breach of fiduciary duty and misappropriation of trade secrets are the primary allegations against Google considering that the former PayPal executives who are involved in the lawsuit are now in charge of Google Wallet.
After months of silence, PayPal’s Anuj Nayar, director of communications shared his thoughts on the NFC technology and on Google Wallet. He explains that among their company’s advantage over Google Wallet is that they are not asking anyone to do something different. By this, he means the purchasing of phones that uses the NFC technology. In order for consumers to use Google Wallet they should have phones that are compatible to such service which includes the Nexus S.
Nayar adds that currently, phones with NFC technology are not trending yet in the market and he sees that this will not happen very quickly. Moreover, the PayPal Director points out that mass adoption of NFC will take years, considering that a change of behavior is required for this leap.
Even so, the eBay owned PayPal is still keeping an eye on the possible growth of the NFC technology through placing investments for Android. But unlike Google, the company is not heavily devoted to the new technology because of the said barriers in its implementation.
PayPal however, is putting its money on “comprehensive solution for in-store merchants” that will be integrated into the PayPal experience later this year. This new feature is somewhat a one-stop shop for merchants. This allows them to manage customer payments that are accessible from any device, and more flexibility of payments for customers among others. Physical payments are also on the way as PayPal is undergoing in-store partnerships with large companies.
Though PayPal is investing on other in-store technologies, it is noted that NFC-technology investments are on a rise. Google is not the only company looking into the possible shift of paradigm in the coming years with this technology. Mobile companies such as Samsung, Motorola, LG, and RIM among others are also investing in this technology.