Google, the legendary search engine is in trouble. It is sued by PayPal on the launch of Google Wallet. Payment processor PayPal, which is owned by an online auction site eBay, filed the 28-page suit at Superior Court of the State of California on Thursday Pay pal claimed that the idea of Google wallet was stolen from Osama Bedier, a former PayPal executive who is now Google’s vice president of payments. Stephanie Tilenius is also alleged to be among those showing off the technology in New York.
Google Wallet also called a “single-tap solution,” will allow mobile phone users to pay with their mobile sets in shops and all transactions will require a PIN. The secure element will allow the payment credentials to be encrypted and stored on a chip inside the phone. In the start, the Wallet will work with a MasterCard from Citigroup Inc. and a prepaid debit card issued by Google but Google plans to let the Wallet accept any card. The Wallet service itself will be free to users. In case of theft, the credit card inside can be remotely disabled.
The wallet app is already used in Japan, and is soon expected to become popular around the world. The suit alleges that Bedier was interviewing for a job at Google and settling for PayPal to handle sales in Google’s application market both at the same time without informing PayPal. Both Beider and Tilenius were former employees of PayPal. Bedier served PayPal for nine years and joined Google on 24 January. While Tilenius was employed at eBay from 2001 to March 2010. Tilenius started working with Google in February 2010 and recruited Beider. The suit accused both of them of luring other PayPal employees to Google.
The suit also asserts that PayPal and Google were partners on developing a commercial venture for three years. Beider, as a PayPal executive was handling all the negotiations with Google where PayPal would serve as a payment option for mobile application acquisition on Android phones. Google denied that they haven’t seen a copy of the lawsuit. ,” a Google spokesperson said, “We have not yet received a copy of the complaint and won’t be able to comment until we’ve had a chance to review it,” Let’s see who wins this battle of wallet.