updated 05:00 pm EST, Wed November 9, 2011
PayPal uses P2P protocol to enable local exchanges
PayPal has announced that it has updated its PayPal Android app (free, Android Market) to version 3.0. In doing so, it has taken advantage of the P2P protocol within the NFC framework to enable friends to be able to tap their phones together to pay each other. The function is similar to its pre-existing Bump capability, but is now a much more direct action.
In order to use the new NFC feature users and their friends will each need any NFC-enabled Android phone and the PayPal app with the Request Money widget installed. To request money, users enter an amount, and then tap phones. Once a user's friend receives the request they enter their password to send money.
By using the P2P protocol, the PayPal app can work with any NFC enabled phones, not just the Samsung Nexus S.