The demonstration was performed by using two Nexus S Smartphones are equipped with a near-field communications (NFC) technology, which allows for rapid transmission of information, in this case the data on the amount of money transferred. Transfers can be done through a special PayPal widget.
“The demonstration shows PayPal is jumping on the NFC bandwagon, which has been embraced by the likes of Google, payment systems manufacturers such as Verifone, and credit card issuers such as Visa and MasterCard. The growing number of players also indicates the crowded room through which a payments provider like PayPal must navigate.” As reported by Cnet, on Wednesday (07/13/2011).
Previously, PayPal already handles the mobile payment through an application that communicates via Wi-Fi or cellular network, or through a mobile browser or text messaging. It is also experimenting with NFC stickers placed on the back of the phone, but the tests are limited in scope.