PayPal showcases peer-to-peer mobile payments using NFC technology

PayPal has announced a cool new way to transfer money from one person to another. It involves the use of the NFC technology found in some of today’s smartphones.

To make this work, all you have to do is install the PayPal widget on your phone. Then you enter the amount that you want to receive in this widget and touch your phone to the person’s phone who will be sending you the money. Once the phone vibrates, the other person is asked to enter their pin number, following which the transaction is completed and you get the money along with a confirmation email.
This feature was demoed on the Google Nexus S, which is one of the few phones to have NFC built-in right now but should hopefully run on all NFC enabled devices in future. Paypal has informed that the feature will be available starting late this summer. Meanwhile you can check it out in the video below.