Content Marketing Blog

Google Wallet leads to law suit

Google's launch of its smartphone payment service, Google Wallet, has led to a law suit from e-Bay, the online auction site and owner of PayPal.

PayPal is the leading provider of online payment services and its logo will be familiar to consumers from the shopping cart pages of various e-commerce websites.

The suit alleges that Google Wallet has been developed using trade secrets obtained by the hiring of key PayPal employees.

PayPal is among the many big online brands developing a mobile payments service. Facebook, Apple and Amazon also see an exciting future where consumers can pay for goods and services by waving their mobile phones over the cash register.

The launch of Google Wallet puts the search engine giant ahead of the pack, with trials set to go live in New York and San Francisco.

It remains to be seen whether or not this legal action on the part of e-Bay will hold things up.

The story is further evidence of the rather intense battle between big US dotcoms for the brightest executives.

Osama Bedier and Stephanie Tilenius, who both left PayPal to go and work for Google, prompting this legal action, will surely not be the last two executives to be tempted over to a rival by better terms, new opportunities or more money.

Google has defended itself, with a spokesman telling the Washington Post that Silicon Valley "was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities".

Even Facebook and Microsoft, who have a number of strong commercial ties, have fallen out with one another over key personnel in the recent past.

The war for talent looks set to continue, especially as the corporate strategy of major brands in this space converge, bringing them into more and more direct competition.