PayPal sued Google claiming that the internet search giant had stolen its technology as to turn smartphones into digital wallets. According to PayPal Google got this secret from Osama Bedier who was a former executive of PayPal and now who is the Google’s vice president of payments.

The lawsuit came later when Google unveiled the plans allowing people to pay for their shopping through their mobiles. As per Google it has still not seen the complaint. According to Google’s spokesperson “We have not yet received a copy of the complaint and won’t be able to comment until we’ve had a chance to review it”.

Now during summer Google intends to launch its mobile wallet technology in U.S. it is planning to offer services to those mobile phones using Android Operating services. PayPal the payment processor owned by online auction site eBay is also clamming that Mr. Bedier was talking with Google while he was leading negotiation to make PayPal an option for payment in Android.

It is a technology allowing people to pay through their mobiles in shops know as near field communications or NFC. It is said by PayPal that it had been trying for three years to secure a deal for which it can create an NFC system for Android.

PayPal in its court filing said “By hiring Bedier, with his trade secret knowledge of PayPal’s plans and understanding of Google’s weaknesses as viewed by the industry leader, Google bought the most comprehensive and sophisticated critique of its own problems available.”

Bedier is put as in charge of payment business of Google making sure that Bedier would misappropriate PayPal’s trade secrets concerned plans and competitive assessments in mobile payments.