PayPal sues Google over trade secrets as Google Wallet is announced

PayPal is suing Google following today’s announcement of Google Wallet, claiming that former PayPal employees who worked on the project have violated their contractual obligations.

PayPal claims that former PayPal executive Osama Bedier shared trade secrets with Google, and that Stephanie Tilenius, also a former PayPal executive, violated her contract by enticing Bedier to jump ships.

Google announces mobile payment system-Google Wallet

Google unveiled a free mobile application on Thursday that turns a smartphone into an electronic wallet.

The Internet giant, at a press conference at its New York headquarters with financial partners Citibank and MasterCard and telecom ally Sprint, said "Google Wallet" is currently being field tested and will be available this summer.

Google Wallet will initially work with Google's Nexus S 4G smartphone from Sprint and will eventually be expanded to more Android phones.

Google Wallet uses a near field communication (NFC) chip embedded in a phone to allow a user to "tap-and-pay" for purchases at a checkout register equipped with the PayPass system from CitiMasterCard.