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PayPal to be an NFC partner in 2011?

Near Field Communication is a feature of Android OS that arrived with Gingerbread (2.3). The practicality of NFC in our day-to-day lives is still to be questioned, but it undoubtedly represents a unique piece of technology that has enormous potential.

As more carriers and credit card companies test out NFC for daily use, it will become clear exactly how effective the technology can be. Rumor has it that PayPal could be one of the first committed partners with Google and could even start NFC payments in the second half of 2011. Laura Chambers, who is Senior Director of PayPal Mobile, said that a commercial NFC service in late 2011 is feasible and that Google could represent a viable partner. 

Such a partnership would seem like a natural fit, given the amount of transactions PayPal handles on a daily basis. It would represent a big step forward for the NFC technology that has the potential to change the way we pay for goods and services.

What do you think about the potential of NFC? Would a PayPal partnership make you more likely to try it out? [Business Week]

  • PayPal payment option in the Market first please
  • Android exclusivity pops up in the dumbest places. Here this would just hurt other Android phones and make the whole thing less attractive. But in the PayPal NFC deal where exclusivity to Google and Android could deal a huge blow to competing platforms and I bet Android will barely have a lead in this.
  • I recall reading somewhere last year that Google was in talks with Paypal, but thought that was only to bring Paypal to Android as a way to pay for apps. This additional partnership for NFC could be HUGE. I've been thinking of investing in ebay, who owns Paypal, solely for this reason. I just may do so now. I'd much rather use NFC with Paypal then have it billed to my phone carrier, and I'd think most of retail would also prefer dealing with Paypal, too.
  • Wait, PayPal? Since when did PayPal ever have any PoS partnerships? It's not like I can pay for my groceries with PayPal now, is it? Or is it their intent that everyone should rock a NFC reader at home? What's the point of that?
  • The article really doesn't explain it very well. I think the phone reads your credit card with NFC and Paypal approves the sale. Not much easier than just having your account set up at Paypal to pay from your Credit Card.
  • Have not had good luck with PP at all. This would be a deal breaker for me. They do not need to have any account info from me in their system at all.
  • Funny thing is paypal probably already has your information if you buy things online often. Chances are you have bought something that was processed by paypal and therefore they already have your info. But I love PP I have been using them from a business stand point and personal for years now. They make life so easy. I am hoping they find a way to let me use NFC from a phone to pay for things goodbye credit card.
  • Paypal also has their own credit card and virtual card (dubbed PayPal Buyer Credit) that are processed by mastercard. I have a feeling those and traditional PayPal purchasing will be the initial uses for this system at PoS.