PayPal Sues Google Following Google Wallet Launch

PayPal aims to protect its position in the mobile payments space

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PayPal Sues Google Following Google Wallet Launch
[ Business]

Google unveiled Google Wallet yesterday, and it’s already gotten the company a lawsuit. It comes from PayPal, and names two Google executives – Osama Bedier and Stephanie Tilenius, both of which used to work at eBay, and worked on extensively on PayPal.

The suit has actually been in the works for some time, and alleges that Bedier stole confidential information from PayPal and that Tilenius violated contractual obligations. Bloomberg reports:

PayPal also alleges that Bedier, who left the company in January, discussed a job with Google while simultaneously leading negotiations to make PayPal a payment option on Google’s Android Market. He didn’t disclose the job-related talks, a breach of his fiduciary duty, the company said.

Tilenius, who left EBay in 2009, was under contract not to recruit employees, PayPal said. She messaged Bedier on Facebook Inc.’s social-networking Web site, telling him she had a “HUGE” opportunity for him, and sent him e-mails and text messages offering advice while he interviewed for a position, according to the complaint.

The suit itself says Bedier “is now leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf,” and that “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”

Google Wallet lets users store credit cards, coupons, loyalty, and gift cards on a smartphone, and uses near field communication technology, enabling tap to pay functionality. Google has partnership with Citi and MasterCard in place.

It has been well established that competition in the mobile payments space is going to continue to get fiercer, and with Google officially in the game, things are already getting much more interesting. Wait until Apple and Facebook make their marks in physical world payments. And let’s not forget Square, which just launched Card Case, which allow consumers to use tabs for payments.

PayPal, a leader in the payments space, needs to break out every line of defense it can as the industry in which it’s been pretty comfortable in for quite some time is becoming greatly disrupted at a rapid pace. Tricia Duryee at All Things Digital brings up an interesting point, saying that PayPal is on track to become bigger than its parent company eBay.

Google has yet to comment on the suit.

PayPal Sues Google Following Google Wallet Launch
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  • http://trafficcoleman.com/ TrafficColeman

    I can’t believe these companies fighting over this crap..they need to just work together and make the money..just that simple.

    “Black Seo Guy “Signing Off”

    • http://www.webpronews.com/ Chris Crum

      Would probably help innovation.

  • JustMe

    I hope they nuke each other. Getting weary of companies making everything more ‘convenient’ for consumers when the real purpose is tracking and collecting data under the umbrella of ‘innovation.’

  • http://www.purpleturtleproductions.ca whistler web guy

    well.. generally speaking.. when two monoliths go after each other fighting for control of any market .. the one with the best rates and service usually wins. good for the customers.. having said that.: you’d think that google would launch it’s checkout in more than two or three countries before thinking about trying to capture a piece of such a potentially massive market.

    I dunno about you (chris) but I think google’s eyes are getting bigger than it’s stomach and they’re going to get thier pee pee slapped

    don’t get me wrong . I love/hate them both

  • http://aurumwriters.com Freelance Article Writer

    Wonderful Tug of war between giants…but hey! finally good things are creeping in terms of user convenience and safety! Good going Google :)

  • http://www.al9ima.com/vb frero

    If proved Paypal this fact and gave evidence I think will win the case
    Thank you for important news
    Will be posted the article on my site

  • http://www.yourhouseintocash.com Gordon Sands

    I love to see anybody take a bite out of Paypal. I wlove to see somebody, anybody to come up with competition for Paypal, because Paypal is the worst company and needs to be replaced :D

  • http://www.raishussain.com Rais Hussain

    I think this would raise competition and would give benefit to the people of the world.

  • http://www.ConstantStrategies.com Constant Strategies (TM)

    I like PayPal. I also dislike when industry giants smash out the little guys. Big banks usually government backed have been monopolizing on small businesses and entrepreneurs for too long. I really hope Google isn’t on that side now, forgetting its roots as a small start up.

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