PayPal adds support for NFC peer-to-peer payments

Summary:Pay back the money you owe your friend -- directly. PayPal will begin supporting peer-to-peer payments to allow its customers to pay each other using two smartphones.

Owe your buddy $5? PayPal hopes next time you pay him back you'll do so by "bumping" your smartphone with his.

The eBay-owned financial services company on Wednesday announced that it will begin supporting peer-to-peer payments to allow its customers to pay each other directly.

The scheme uses near-field communications, or NFC, technology to allow a device to transfer payment directly to another. Think of it like a digital check that's cashed seconds after you create it.

The company demonstrated its new NFC-enabled widget for Google Android smartphones this morning at the event by "bumping" two Samsung Nexus S handsets together.

The company says it will roll out the feature "late this summer."

PayPal said it's been evaluating NFC tech for a while. As I've written before, it's just another arrow in the company's growing quiver of ways to pay for things digitally, helping fulfill its goal of being a part of every digital transaction.

Topics: Enterprise Software, Banking

About

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. He is also the former editor of SmartPlanet, ZDNet's sister site about innovation. He writes about business, technology and design now but used to cover finance, fashion and culture. He was an intern at Money, Men's Vogue, Popular Mechanics and the New York Daily Ne... Full Bio

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