Owe your friend some cash but forgot your wallet? PayPal announced on Wednesday a new feature that allows phone-to-phone money transfers using near field communications technology for Android devices.
Similar to the popular Bump app that transfers contact information from one device to another, Samsung Nexus S owners – which uses the Android platform – will be able to tap their phones together to transfer funds.
Although the Bump app uses sensor technology for devices, the PayPal app will incorporate NFC technology that requires a chip that enables fast and secure transactions.
Although NFC technology has taken off in parts of Asia, the United States market is still warming up. According to Juniper Research, global shoppers are expected to send about $50 billion through NFC technology on their mobile devices by 2014.
The PayPal app will be offered through the Android Market app store later this summer and will be limited to the Samsung Nexus device until more devices with built-in NFC technology hit the market.