PayPal Begins The Mobile Payment Revolution On Android

Paypal is a very popular service which allows for the exchange of money between people and companies. It’s used for many services, and it has even broken the 100 million active user milestone. Last week Maddy Rowe wrote an article here on OSM that predicted that NFC could take over completely by 2015, and this week PayPal has announced its NFC application for Android which proposes to start the mobile phone money exchange revolution!

Christina Warren over on Mashable is reporting on the new update to the PayPal Mobile application which enables Android users to make payments to one another using only their mobile phones and their PayPal accounts using NFC (Near Field Communication). This will enable two people to make a transfer of money quickly and easily using their mobile phones.

Embedded below is a video which shows the process of making a payment, but it happens as follows. If I am my friend is paying me $20, I first enter in the money requested through the widget included in the application. We then touch phones together whilst the screens are on until they buzz. My friend then enters in his PIN and the monetary transfer takes place.

This is a brilliant way for people to transfer money, but the biggest problem is the availability of devices which support this feature. So far only the Samsung Nexus S has an NFC chip installed and no iOS, Windows Phone 7 or Blackberry device supports it yet. PayPal Mobile applications on the iPhone and Android currently does support bump-style mobile payments currently but the NFC version of this application is super fast and hassle free.

Is NFC the way of the future? We’ve seen Google Checkout as a way of paying for your goods in stores without having to use physical cards, cash or coins but the question is whether or not this will become a big enough success in the future to the point where we will only carry our phones around with us to make payments. I certainly can’t see my parents being able to use this sort of technology, so it looks as if we may be carrying around wallets and phones for the foreseeable future.

The PayPal Mobile application will be updated with these new features in late summer. In the meantime there is a PayPal Mobile iOS and Android app currently available without NFC features which you can download by going to the app store on your device. Can you see a future where we only pay using our phones? Let us know in the comments below.