Mobile

Google has 99 problems, but PayPal's lawsuit ain't one

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During a live demo at the D9 event Tuesday, Google said it views its new Wallet service as entirely different from the new point of sale devices PayPal is reportedly developing with major retailers.

Google is probably hoping the court will feel the same way when reviewing the recent lawsuit filed by PayPal’s parent company Ebay against the search engine giant for allegedly stealing trade secrets about mobile transactions.

The lawsuit was filed just as Google revealed its plans for Google Wallet, which allows consumers to use their Android smartphones for transactions and coupons.

When All Things Digital’s Kara Swisher — noting the lawsuit — asked how Google Wallet was like PayPal’s efforts, Google executive Stephanie Tilenius explained that Google Wallet is “integrating at the point of sale.”

“We’re not actually distributing new point of sale devices… (like credit card machines)”, she said, which is what PayPal has indicated it was working on in regards to mobile transactions.

Instead of swiping a credit card’s magnetic strip for transactions, Google Wallet uses a smartphone’s NFC chip, which was described as a unique identifier that can be assigned to credit accounts.

Google also stated that it would monetize Google Wallet through its Groupon-like service, Google Offers, which allows vendors to offer special deals to consumers.

Since Google isn’t directly profiting from its Wallet platform or creating point of sale devices for store vendors, the company doesn’t seem worried about the outcome of a legal battle — even if some of its top executives violated contract agreements with previous employers.