Google isn’t the only company building support for NFC (Near Field Communications) technology into its mobile payment apps. PayPal showed off a new app today that will allow you to transfer money simply by tapping two phones together.

You just fire up the PayPal app on your phone and set it up to send money or receive money. Once the phones come into contact you’ll still need to enter a password or PIN before the transaction is complete, so it won’t be easy to transfer money using a stolen phone and hopefully you won’t accidentally send your buddy $100 by accident just because your phones are placed net to one another on the coffee table.

The app currently works on the Google Nexus S, which happens to be the only Android phone available in the US with NFC.

PayPal unveiled the new app at the MobileBeat conference today. You can check out a demo video after the break.

Brad Linder

Brad Linder is editor of Liliputing and Mobiputing. He's been tinkering with mobile tech for decades and writing about it since...