The technology lets Android users with a NFC-enabled phone (right now that means the Samsung Nexus S) to initiate payments with one another by tapping their devices together. PayPal demoed the new feature Wednesday at MobileBeat 2011.
PayPal Mobile has supported bump-style mobile peer-to-peer payments in its iPhone and Android apps for quite some time, but what makes the NFC implementation different is in its ease and speed of use.
This is the way it works:
The PayPal Mobile app will now feature an NFC payments widget that could be shown on an Android phone screen.
The user who would like to request money hits the request-for-payment button and enters the amount.
The user who is sending money needs to have his or her phone screen on and tap or wave the phone near the other user. Wait for the buzz sound.
The requesting user receives a notification and enters in his or her PIN to confirm the transfer.
For the person-to-person payment space, this is a big deal. It cuts down on the hassle involved in doing mobile or online payments.