PayPal has introduced a mobile wallet

Pay for the purchase or lend money to a friend could soon be simply raising a two to one another handset. The technology presented by PayPal – the service will be available this summer. Experts warn that the mobile device with the function of means of payment, will require major changes in the legal framework to protect consumers from fraud.

The company introduced the conference PayPal MobileBeat 2011 new way of mobile payments. It will allow people to make purchases and pay “at any time, any place and on any device,” the company said.

The method is based on the technology of NFC, which uses high-frequency wireless short-range communication, which enables the exchange of data between devices at a distance of about 10 centimeters. This is an extended version of contactless smartcards, such as subway cards or badges of office, but it combines in a single device and interface smartcard reader.

The transfer of money from phone to phone, demonstrated senior director of PayPal Mobile, Laura Chambers, is simple: paying launches special widget, and selects the “pay” in his gadget. The person receiving the money, also runs the example program on your device. Then two smartphones to bring together, on a connection will be signaled by vibration.

Paying it remains only to enter a PIN code, and the operation is performed: the money transferred from one PayPal-purse to another.

PayPal is not charge any commission, said Chambers. Banking software will be available for download in the summer.

With the new technology can not only pay for purchases, but also, for example, lend money to friends, relatives, colleagues and acquaintances, said Chambers. “We have found an elegant way by combining the best of what is at NFC, with our own experience” – she added.

NFC technology will be used in the payment service, Google Wallet, which Google introduced at the May conference in New York. The company plans to merge as part of its mobile wallet service with the capabilities of coupon and discount programs and promotions when shopping via mobile phones.

In June it became known that the program is to read the NFC-data integrated into Google + application for mobile devices. The first phone, which will earn a service becomes Nexus S-based operating system Android, equipped with NFC chip production NXP inside. With it, users will be able to pay within the payment system MasterCard PayPass.

In May, PayPal Inc sued Google and two former executives of the company for industrial espionage and the disclosure of secrets, which are used in mobile payment systems. PayPal blames Osama Bedera and Stephanie Tilenius, who now work in the leadership of Google Wallet PayPal, that they stole the idea and gave her new employer.

Service from PayPal too while working on a Nexus S. Later, the promise of the payment system, a list of models will be expanded.

In the future, personal mobile devices will absorb into itself the function of means of payment, as happened with the functional players, electronic books, mobile phones, notebooks, cameras, compasses, and so on, confident Marketing Director and analysts’ Integrum “Igor Chesnokov. But for these devices will have to seriously reconsider the existing legal framework, the expert said: because law violations in the transfer of electronic money “on air” does not yet regulated. And they will, no doubt experts.

“By itself, the standard NFC does not require secure communications: radio-frequency signal can be intercepted. Also, the signal can be suppressed, resulting in the inability to use NFC »

– Reminds the leading anti-virus expert

“Kaspersky Lab” Denis Maslennikov. Possible to carry out attacks and using the relay, he adds: the attacker sends the victim’s request to the device reader, and then immediately, that is, in real time, transmits a response to the reader device of the victim. Finally, it will exacerbate trouble that are waiting for the phone owner for his loss. “In order to minimize the risk of lost or stolen device by third parties, they will advance to install software remotely locking or deleting data,” – said the expert.