PayPal Introduces NFC Peer-To-Peer Mobile Payment Tool

On Wednesday PayPal revealed its new peer-to-peer payment method, which will allow Android users to make payments between each other using two NFC-equipped (near field communications) mobile devices.

According to Reuters, the web based payment transfer company PayPal has launched a dedicated widget for devices powered by Android enabling users to make payments to one another by simply placing their phones together.

Laura Chambers, the senior Director of mobile division at PayPal, demonstrated the latest widget for its tap-and-pay technology while addressing the Mobile Beat conference in San Francisco, California by using two NFC enabled Samsung Nexus S phones.

"With a simple 'buzz' you’ll be able to transact with friends, family, colleagues and employees easier than ever before. Sometimes the most obvious solutions are the most elegant." Chambers wrote in an official blog post.

The NFC technology used by PayPal is also being used by Google Mobile Wallet technology for its Android smartphones and tablets, as well as Verifone, the developer of payment methods used by the credit cards Visa and MasterCard.

The widget is placed on the desktop of the smartphone and the app activates as soon as the phone is tapped against another widget enabled smartphone. The money can then be transferred by giving a PIN number.

PayPal's new payment system will work initially only in the US.