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Paypal v. Google: a tawdry tale of trade secret misappropriation
Google and its poached Paypal employees got sued for trade secret misappropriation yesterday, but we didn't know the dirty details until now. A peek at PayPal's complaint reveals there's a bit more to the story. Apparently, Paypal and Google were in talks last year to use PayPal for payments in the Android Market. Osama Bedier was in charge of those negotiations for PayPal in October of 2010, when the deal was supposed to close, but was allegedly interviewing for a mobile payment position at Google at the same time (holy conflict of interest, Batman!). The complaint claims that Bedier initially rebuffed El Goog's advances, told PayPal of the job offer and professed that he would stay, but jumped ship a month later (bringing some PayPal coworkers with him) after being recruited by Stephanie Tilenius and the almighty dollar. Once it hired Osama, Google reportedly put the brakes on the PayPal deal and created Google Wallet. Then Google, Bedier, and Tilenius got slapped with a lawsuit. A brief rundown of the legal claims awaits you after the break.
PayPal swiftly slaps Google with mobile payment suit
Just this morning we reported on the rather jovial atmosphere at Google's big mobile payment announcement -- well, it looks like PayPal's prepared to bring an end to the celebration. According to Bloomberg, PayPal filed a suit against Google today in a California Superior Court, alleging that former PayPal executive, and one of this morning's MCs, Osama Bedier misappropriated the company's trade secrets. The suit further fingered Stephanie Tilenius, also formerly with PayPal, of violating the terms of her contract in recruiting Bedier. Though we've yet to get our hands on any clear details about which trade secrets PayPal's pointing to, we'd say the timing speaks volumes.
Google Wallet mobile payment service, Google Offers announced
It may not be as big a surprise as Google hoped it would be at this point, but the company has now officially announced its NFC-based Google Wallet mobile payment service, complete with backing from a number of retail and financial partners including Subway, Macy's, Walgreens, Toys 'R Us, First Data, Citibank and MasterCard -- plus Sprint on the carrier side. In the case of MasterCard, that partnership means Google Wallet will be fully compatible with the PayPass contactless payment system that's already widely in place today. Trials are beginning immediately in New York and San Francisco, with a full release planned for this summer. Initially, the Sprint Nexus S 4G will be the only compatible phone, but support for more phones is promised "over time," and Google even suggested that phones without built-in NFC could simply use an NFC sticker (the Google Wallet app itself will work on non-NFC phones as well). You'll also have to use either a Citi MasterCard or Google Prepaid Card with the service, although the latter can obviously be funded from any other card. Also announced today is Google Offers, which will deliver an "offer of the day" to your inbox, and let you seek out other offers from retailers. Of course, it also ties into Google Wallet, and you'll be able to both redeem offers and receive loyalty rewards from retailers with just a tap of your NFC-enabled phone. As far as Google is concerned, however, mobile payments and special offers are just the beginning for Google Wallet. It eventually sees everything from boarding passes to tickets to IDs (and even keys) being stored on your phone. Not surprisingly, all of this is US-only for the time being, but Google is apparently working on international expansion. Head on past the break for a video and the complete press release. %Gallery-124537%%Gallery-124538%
Google gets creative, names new NFC payment system Google Wallet? (Updated)
Yesterday, anonymous sources said that El Goog and Sprint would debut a new NFC payment system on May 26th -- otherwise known as tomorrow. Today, a leak allegedly from The Container Store appears to have spilled the beans on the moniker for Mountain View's mobile money method: Google Wallet. Not the most creative cognomen, but at least it sums up the service succinctly. Still, it's no Ice Cream Sandwich, but we'll find out how it tastes live at tomorrow's event. Update: Eagle-eyed reader Steve pointed out that looking up the WHOIS info for googlewallet.com does indeed lead you to Mountain View, though this was created way back in 2005. You may recall that Google Checkout was initially known as Google Wallet, as reminded by InformationWeek, but we just noticed that the URL is now plain dead instead of taking us to a Google error page, as it did minutes ago. Very intriguing.
Google and Sprint team up to take your digital dollars with new NFC payment system? (updated)
There's been rumors of a Google-fied mobile payment system for some time, and now it looks like the Mountain View crew is teaming up with Sprint to finally make it happen. Last month, we heard that the Now Network would bring NFC payments to its customers this year, and Bloomberg reports that the partnership and payment system will make its debut on May 26th. Apparently, New York, San Francisco, Los Angeles, Chicago, and Washington D.C. are the first cities getting the service, which is a much broader initial footprint than its Isis mobile payment competition. The anonymous sources also say that Verifone and Vivotech are providing the hardware and software that will let you replace your credit card with a Nexus S -- because you always wanted to replace your credit card with your Nexus S. Update: According to All things D, the payment system will be put through its paces by none other than El Goog's Executive Chairman Eric Schmidt at the D9: All Things Digital conference next week -- where we'll be on hand to peep the contactless payment presentation in person.
Square Register and Card Case hands-on
It looks like Square's little headphone jack-connected credit card reader has some company. The mobile payment startup introduced two new additions to its unique stable of payment options in San Francisco this morning that do away with credit cards, paper receipts, and even the bantam reader itself (to some degree). First up is the Square Register, an app that allows merchants to accept payments by way of the card reader or through a card-less (no, it's not NFC) tab -- like, "put it on my tab" -- system, and uses Google-style analytics to keep track of payments, receipts, and trends. The second announcement, the Square Card Case, is a virtual wallet that holds a series of "cards," each relating to a participating outlet, that let you put your purchases on the aforementioned tab. Each shop has its own virtual credit card, and enables shoppers to make and track purchases with a single click of a button. We got a chance to give the setup a try, and it's just about as simple as Square would have you believe. To get started, you make a regular, Square-enabled purchase at a participating store, at which point a text-message receipt is sent to your phone that prompts you to install Card Case -- we skipped this step, as this was just a demo. Once set up, we were introduced to the Card Case, holding cards for the participating stores -- only 50 spots in five cities, for now -- and an "Explore Places" button that offers access to a directory of participating outlets. We selected a nearby cupcake stand, clicked "open tab" and picked our poison: a miniature red velvet cupcake, in this case. The merchant picked our name from a list of open tabs, charged the tiny treat to our card, and a receipt was promptly pushed our way. After the transaction was complete, we went back to the cupcake card in the Card Case, and there was the receipt. All in all it was a painless process, but, then, so is whipping out a real wallet to make a purchase. The new Square setup is available now at 50 different establishments in New York, LA, Saint Louis, San Francisco, and DC, and the company says it will curate the list of participating stores, much like Apple does apps.
NTT DoCoMo announces 24 new mobile wonders (yes, really) to flood its network
So, Japan... want a new mobile device? How about 24? This grandiose announcement comes straight from NTT DoCoMo, which commonly lays its cards on the table for the delight of consumers. Among the selection you'll find eight new Gingerbread phones, six incredibly high-res shooters (ranging between 12.2 and 16.3 megapixels), eight waterproof handsets, and one embedded with Swarovski crystals. We're particularly thrilled to see the mighty Galaxy S II, 3D-capturing Aquos SH-12C, 700-nit Optimus Bright (contrastingly-named but nearly identical to the Optimus Black), ultra-slim MEDIAS WP N-06C, and mobile payment-enabled Xperia Acro. Oh, and don't forget about the LOOX F-07C -- a multi-talented handset that's running Symbian and Windows 7 Home Premium -- while two LTE-enabled WiFi routers are sneaking into DoCoMo's party, too. That's a lot to absorb, so check out the source for individual release timeframes, which begin now and continue through August -- or just check out the PR after the break.
ING Direct's iOS app adds 'bump' money transfer feature for well-heeled posses
Look, violence doesn't solve everything, but ING Direct reckons a gentle fist bump can help fix financial quarrels between you and your buddies. Recently added to the bank's iOS app is a feature that makes use of Bump Technologies' API, with which a physical bump between two active devices instantly triggers a money transfer, thus saving the sender from having to put in account details. 'Course, this is only usable for transactions within ING for the time being, so you'll have to stick to other methods for some quick and dirty mobile payments to the outside world.
Square to add encryption to mobile card reader, skimmers put on notice
It's only been a couple days since we first heard about Visa's involvement with Square, but the credit card giant is already making its mark on the mobile payment startup. At the Visa Global Security Summit on Wednesday, Square Security Lead Sam Quigley revealed that the company will distribute an encrypted card reader this summer, which will work exclusively with its mobile payment app. The current reader theoretically scans credit card data to any app, but the encrypted version will only work with Square, which should alleviate VeriFone's concern that the company was essentially distributing "card skimmers" to anyone with a social security number. Luckily, the new encrypted reader will remain free, giving Square a colossal advantage over VeriFone's Payware Mobile product, which carries a $49 activation fee, in addition to standard merchant fees. Not to mention, it isn't available in white.
iZettle's chip-reading Square competitor will take your money, no swipes required (video)
Everyone seems to be getting on board with Square's iPhone credit card reader -- Apple started selling the device in its stores last week, and even Visa has taken a financial interest in the company. However, due to the popularity of fraud-fighting chip-enabled smart cards on the other side of the pond, Square's offering doesn't quite fit the bill. iZettle has a similar solution for Europe that includes the ever-so-necessary smart card reader, which the company is launching in Sweden this June. Not only does it enable you to accept credit card payments from friends or customers, the app adds a social twist. Merchants can email a photograph and receipt to buyers, who can then share their latest spoils on Facebook. Of course, if this starts to catch on, it could make explaining that "awesome deal" you scored on a new laptop that much more difficult when it pops up on your significant other's news feed. [Thanks, David]
Square gets financial backing from Visa, asks to see some ID
Everything's coming up Jack Dorsey these days. Last week Apple started stocking Square's iPhone credit card readers in its 235 US retail locations, and now, according to Reuters, Visa has put its plastic where its mouth is. The credit card giant has invested in the personal payments startup, scoring itself a spot on Square's advisory board in the process. No word on how much Visa is actually dropping on the company, but one thing stands to reason: it probably didn't make the deposit via Verifone. If you would like to invest in a Square reader, it'll cost you a lot less -- the company is still offering smartphone plug-ins for free on its site.
Apple Stores stocking Square credit card readers
Jack Dorsey's über-popular credit card readers got a big thumbs-up from Cupertino this week. Square's devices are hitting Apple's 235 US retail locations and Apple.com for $9.95 a pop -- plus the 2.75 percent that the startup takes off the backend each time you use the reader -- or you can always just sign up for a free one over on Square's site. The iPhone / iPad / iPod touch plug-in accepts Visa, MasterCard, Discover, and yes, even American Express. The CEO of VeriFone will no doubt have plenty to say about the matter. Update: It turns out you get a $10 redemption code in the box when you buy a Square reader at an Apple store, so it is still technically free (just not, you know, when you buy it). [Thanks, Michael]
Sprint says its NFC-based payment service will launch this year, beat other carriers to the cash register
AT&T, T-Mobile and Verizon may have all lined up to support the so-called Isis mobile payment system for cellphones, but Sprint has decided to go it alone for various reasons, and it's now saying it plans to beat the others to market. As Bloomberg reports, Sprint is already working with payment networks and handset makers on its own NFC-based system, and it says it plans to roll out the service sometime this year, while Isis has previously stated that it only expects to be ready in 2012. While details are otherwise still fairly light, Sprint says that customers will be able to have purchases billed to their regular credit card statements rather than their phone bill, and that it will rely on alternatives to taking a percentage each transaction for itself as Isis plans to do. Of course, while this is Sprint's latest move in the space, it's far from its first -- in fact, it's been running NFC trials as far back as 2007. [Thanks, Carl]
Amazon said to be considering NFC-based mobile payment service
As you may be aware, Amazon does actually already make it easier for you to shop at places other than Amazon.com with its Amazon Payments service, and it now looks like it might even be thinking about expanding things to brick and mortar stores as well. More specifically, Bloomberg is reporting that Amazon is exploring a mobile payment service based on NFC technology, which would let you pay for items and receive things like loyalty points using nothing other than an NFC-equipped cellphone. Not surprisingly, Amazon is also said to be considering some other features that would send folks back to Amazon.com -- Bloomberg gives the example of someone shopping for jeans in a retail store who can't find the right size, and says that they could simply scan the jean's tag to order a pair online. Details are otherwise a bit light, and the service is apparently still not quite a sure thing, although a person familiar with the matter says Amazon will decide whether to go forward with it or not "in the next three to five months."
Samsung and Visa join forces to enable NFC mobile payment at 2012 Olympics
From a gadgeteer's point of view, one of the best things about the Olympics is its tendency to bring in new technologies to the hosting city. Take the 2012 games, for example: not only are the London Underground stations getting WiFi hotspots, but news has it that Samsung and Visa are holding hands to deliver NFC mobile payment solutions to the city. In fact, more than 60,000 locations in London are already geared up with contactless payment systems, and right now Visa is negotiating with banks to get its contactless cards and mobile phones approved. For the latter, one such device will be Samsung's Olympic and Paralympic Games mobile handset that comes with a Visa-enabled SIM card, and it'll be made available to sponsored athletes as well as various retailers. Furthermore, this alliance will continue after the Olympics, and Visa is rolling out its mobile payment system in many other countries as we speak, so it shouldn't be long before we hear more Visa handset announcements.
Windows Phone 7 getting NFC payments in next update?
Microsoft's Windows Phone 7 is still catching up to the competition in terms of apps and basic features, but when it comes to mobile payments it might not be left in the dust -- Bloomberg has two anonymous sources who say that Microsoft will outfit the next version of Windows Phone 7 with software support for near-field communications, and bake NFC tech into WP7 smartphones as early as this year. As we heard earlier this week, Google's reportedly working on a similar plan, complete with partnerships in the credit card space, RIM may or may not be arguing with carriers over its Bank of America trial, and the general consensus around the water cooler is that Apple won't be pursuing contactless payments this year. Yes, it's an exciting time to work in industries that rely solely on money changing hands.
Charge Anywhere update turns Nexus S into full-on mobile payment terminal
Processing mobile payments via an external dongle? That's so early 2011. Charge Anywhere has a less troublesome idea, and if you're the lucky owner of a Google Nexus S, you could soon be accepting cold, hard virtual cash via NFC. For those already familiar with the space, you'll know that this very company already has applications out for the iPhone, BlackBerry and Android devices, but all of those obviously require a credit card swiping mechanism to be connected. According to CNET, the latest version will include support for the NFC module embedded within the Nexus S, enabling it to be a full-on mobile payment terminal with no additional hardware required. Both MasterCard PayPass and Visa Blink payments could be ingested, but don't go searching for the update in the Android Market; the company's done with the new build, but it won't be let loose to the public until it's ran past larger customers first. We don't get the impression that the NFC-compatible version will run any more than the $9.99 per month, but it's obviously a wait-and-see affair for now.
Carriers at odds with RIM over NFC payment data
We've already heard a fair bit about RIM's plans for NFC-based mobile payments, but it's starting to look like some of those plans don't quite line up with what the carriers have in mind. As the Wall Street Journal reports, there's a brewing dispute between RIM and a number of carriers including AT&T, T-Mobile and Rogers over just how NFC payment-related data, or "credentials," are stored, and who actually controls that data. For its part, RIM unsurprisingly wants to store the data in a secure area of the phone itself, which would obviously tie folks to their BlackBerry more than ever, while the carriers are pushing to have that data simply stored on the phone's SIM card, which would let customers move from one phone to another more easily. While things apparently haven't gotten that heated just yet, it does certainly seem like there's a bit of a fight in store -- according to the Wall Street Journal, RIM is already reaching out to banks on its own in an effort to strike some deals, while Canadian carriers have apparently been telling RIM in a "gentle" way that "you won't be doing this."
Square's Jack Dorsey calls VeriFone's vulnerability claims 'not fair or accurate'
We had a feeling that Square wouldn't let VeriFone call it out without issuing some sort of statement, and CEO Jack Dorsey has responded to the claims of a gaping security hole in the form of an open letter on the company's website. Dorsey calls its competitor's accusations "not fair or accurate" and says that many of the necessary security measures are already built-in to your credit card itself. He also points out that this sort of credit card number thievery is possible every time you hand your plastic over to a waiter or salesperson, and that its partner bank, JPMorgan Chase, stands behinds all aspects of the service. To us, it seems like Verifone is more than a little scared at the prospect of Square undercutting its fees and potentially upending the POS business -- but we're just theorizing. One thing is for sure though, we'll be hearing a lot more about this as the mobile payment war heats up in the future.
VeriFone puts money near mouth, says it'll include NFC in all new POS terminals
Well, here's a bold step forward for NFC -- payment solution provider Verifone says its new batch of point-of-sale terminals will come standard with the touch-to-pay wireless technology. That's the word from Near Field Communications World, who quizzed the company just a few days after CEO Douglas Bergeron called on the payments industry to foot the NFC bill, saying "The retail point of sale represents a point of convergence for smartphone-initiated payments, social networking and electronic couponing, but it won't happen if retailers are expected, on faith, to absorb the costs of making it work." Sounds like a company that's very keen on letting us pay by swiping our phone. Unfortunately, he didn't say when such technology might roll out.
