PayPal has shown their new peer-to-peer NFC payment system at MobileBeat 2011 today, using two Android powered Samsung Nexus S phones. The premise is simple -- open the app on both phones, enter the payment amount on one, and bump them together. After the buzz, enter account details, and the payment is processed. Afterwards, the normal email receipts are generated and sent out, just like we did it in the old days.
There's no firm date when to expect this, but PayPal says "late this summer". Another compelling reason for manufacturers to put NFC capabilities in their new models, or just a security concern? Either way, we'll find out soon enough. Hit the break to see a demo video.