PayPal sues Google over mobile payment system

The announcement of Google’s new digital wallet system has prompted PayPal to file a lawsuit. PayPal is accusing Google of stealing its idea of goods being purchased with the use of a smartphone.

The “Google Wallet” allow consumers to simply tap their smartphone on  a PayPass system—eliminating the use of credit cards.

The lawsuit also claims that Google pulled in a former PayPal executive who then provided Google with information. The PayPal executive was interviewing for a Google position while still working for PayPal. The executive, now vice-president of payments at Google, was at the unveiling of the mobile payment system in New York.