PayPal has sued Google over the recent announcement concerning their mobile wallet technology, otherwise known as near field communications.
PayPal have claimed that Osama Bedier, their former executive, managed to obtain trade secrets before being hired as Google's vice president of payments in January.
The much-anticipated technology is due to launch in the US this summer, allowing shoppers to pay for items with their Android-operated cell phones.
It has been reported that Osama Bedier was leading a similar project at PayPal whilst in job negotiations with Google.
The technology is already used in Japan and is expected to be a worldwide success when introduced to various markets.
During the court filing, a PayPal representative 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. Google put Bedier in charge of its mobile payment business, virtually ensuring that Bedier would misappropriate PayPal's trade secrets concerning planning and competitive assessments in mobile payment."