PayPal Introduces Payment Buzz

A few days ago, PayPal introduced a new feature for Android Phones, that enables users to simply hold their smartphones together and wait for a buzz initiating a money transfer between the two users.

The system works currently only with Samsung’s Nexus S phones that contain Near Field Communication chips.  Near Field Communication is a wireless technology that enables devices to exchange information – including encrypted payment data – over a short distance. It can enable a consumer to pay for goods in a store by waving a smartphone with an NFC chip near an NFC-enabled terminal.

To use the new person-to-person payment service, one PayPal user sends a request for a payment to another PayPal user from within a PayPal widget on their smartphone. I’m curious when I can go to the next grocery store and pay with my phone like this!

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