PayPal could have NFC payment system in place in 2H 2011

Google’s Nexus S features NFC (Near Field Communications) technology, and the Big G is already implementing its use with Places and Hotpot in Portland, Oregon. The applications Google has presented us with thus far are fun and good, but NFC has much greater potential in the realm of payments, personal and commercial.

Google’s purchase last August of startup Zetawire, who specialize in “mobile banking, advertising, identity management, credit card and mobile coupon transaction processing” (according to CrunchBase), indicates that Google is cooking up something big in the realm of payment processing. This acquisition could point primarily to point of sale transactions, but Bloomberg Businessweek points out that Paypal and Google could be working together for POS transactions and peer-to-peer payments.

PayPal Mobile Senior Director Laura Chamers says that PayPal may start a commercial NFC service in the second half of 2011, and that PayPal is open to partnering with a company like Google in the venture. This falls far short of any sort of announcement…or even a hint of particular intent, but it’s nonetheless interesting to consider. In describing the advantages of combining commercial and personal payment systems, BW uses the example of associates eating a meal together, one paying the bill with their phone and the other beaming his or her share to the payer.

Via Talk Android

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