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Thursday, July 14, 2011

PayPal plans NFC peer-to-peer mobile payments within a few weeks

PayPal has announced a peer-to-peer NFC solution that’s expected to be available towards the end of summer 2011. A new Android widget will let people pay money to friends by ‘tapping’ two NFC-compatible phones against each other.

The application was demonstrated by Laura Chambers, Senior Director at PayPal Mobile, at the MobileBeat 2011 conference.

[PayPal blog]

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Categories: Applications, NewsNumber of views: 3929

Tags: nfc android payments applications paypal

1 comments on article "PayPal plans NFC peer-to-peer mobile payments within a few weeks"

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William Old

7/16/2011 10:20 PM

Paypal might well be fine for micro-payments or low-value purchases, but readers should bear in mind the fatal flaw with Paypal that means it should NEVER be used for higher value payments, as the payment processor for purchases using a credit card.

In short, payments of £100 or overusing a credit card usually give the purchaser, by law (Section 75 Consumer Credit Act 1977) protection if the payee fails to deliver the goods or goes bust... the credit card company (because they receive a percentage of the payment) becomes a joint second party to the contract of sale and is therefore legally just as liable as the actual supplier.

Unless, of course, Paypal is involved, because legally you are handing the payment to Paypal to hand on to the supplier... so the credit card company is only a party to the contract to make the payment, not to supply the goods and/or services.

In short - no Section 75 protection whatsoever! Never use Paypal for such a transaction - remember, it moved to Luxembourg because in 2007 they no longer wanted to be licensed by the FSA and although your User Agreement is "in accordance with" English law, it can't be enforced, as your contract is with a Luxembourg company - you can't serve PayPal (Europe) S.Ã. r.l. et Cie with a County Court claim!

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