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PayPal sues Google over smartphone service

(Paul Sakuma)

May 27, 2011 12:00:00 AM PDT
PayPal is suing Google, claiming the Internet giant stole ideas for a new smartphone service.

Google's program is called Tap to Pay.

Users are able to store credit card and coupon information in their phones and pay by just tapping the handheld device at select checkout counters.

The complaint alleges Google lured away a PayPal executive earlier this year to obtain trade secrets.

Tap to Pay will have a limited trial this summer in New York and San Francisco.

It will then expand nationwide.