Pay Pal filed a lawsuit against Google and two of its former employees who joined Google. Bloomberg
reported that PayPal claims that Osama Bedier, a former PayPal executive who is now leading Google's POS technologies stole confidential information.
Osama Bedier is now Google's vice president of payments.
PayPal 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 Android.
PayPal 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.
In its court filing, PayPal 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."
Mr Bedier was hired by Google in January of this year.