Online payment gateway Paypal has announced a peer-to-peer payment feature for Android users using Near Field Communication (NFC) technology, Payments can be sent or received by entering transaction details and tapping the phone against another phone.

Near Field Communication (NFC) technology may have been incorporated into many smartphones these days such as the Samsung Nexus S and Sony Ericsson Xperia Arc, but it has not taken off due to the varying competing standards and existing technologies, as well as the lack of usage such as contactless mobile payments. However, online payment gateway Paypal looks to be taking a step to push the mobile payment with their recent announcement of NFC Android phone-to-phone payment. According to sources, the transaction works through a PayPal widget which users can use to send or request money. The user needs to enter the transaction details and tap his or her phone against another phone that also has the same app installed. The phones will buzz together and recipient can then choose to accept the transaction by keying in the PIN number.

The PayPal new mobile payment service is currently slated to work only in the U.S. and with the Samsung Nexus S from Sprint and T-Mobile. However, the company said that it will also expand to other Android phones with NFC functionality in the near future.

Source: Reuters