PayPal allege that former executives Osama Bedier and Stephanie Tilenius defected and used trade secrets to help their new company create Google Wallet.
The lawsuit was filed just hours after Mr Bedier, who was hired just five months ago, launched the product in New York, where it will be tested this summer.
PayPal, which is owned by eBay, have not released such a system, which allows users to swipe their phone on a scanner and make an instant payment.
But they say they says it spent three years trying to secure a deal under which it would create an NFC system for Android, only for Google to end the talks by muscling in with a rival product.
The firm also claims in its lawsuit that Mr Bedier was in job talks with Google at the same time as he was leading negotiations to make PayPal a payment option on Google’s Android software. Read More