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  • NFC: A Way to Avoid PayPal Fees
Technology Articles > Cell Phones > Android > NFC: A Way to Avoid PayPal Fees

Near Field Communication (NFC) is a slice of technology that could have been taken out of an Asimov novel. This is the technology that surfaced throughout North America some time ago in the form of rumors. This is the technology that will allow the world to go wallet-less while using smartphones to pay for everything.

Up until this point, NFC technology was largely unheard of in North America. Now, Google has taken a giant leap forward into the depths of NFC. Available only on the Nexus S (at the time of this writing) NFC is available through PayPal. Many other cell phone companies have stated that they intend to support NFC soon, though they are likely waiting to see how the technology is received through the Nexus S.

What Does NFC For PayPal Do?

Picture this scenario: you owe your friend ten dollars. Your friend wants his money right away. You log into your PayPal for Android app, select “send a payment,” touch your phone to your friend’s phone, and wait a few minutes. You’ll feel a buzz, and the ten dollars you owed to your friend will be directly deposited in his account.

PayPal has recently stated that the service will not charge users any kind of transaction fee if users are depositing money into a bank account or have funds in a PayPal account. For years, those who use PayPal have been trying to find a way to avoid the high PayPal fees. NFC technology is the answer (for now).

Some Drawbacks

Aside from the fact that NFC for PayPal is only available on the Nexus S Android phone, there’s one other drawback to consider. If you have to send money to someone who’s not located directly next to you, this app is useless. Will people meet up just to use this new PayPal option? Not likely. Will some people find a use for the option? Probably.

Just who those people are is currently unknown. What is known is that NFC technology has a lot of potential – enormous potential. It’s not unreasonable to assume that paying for items using your smartphone will be a reality within the near future. Google is the first company to adopt this technology, though it’s expected to be received with open arms.


PayPal hasn’t set a concrete date for the new app, though the company has said that the NFC feature will be available sometime this summer. We’re guessing around August or September. This may, in fact, be enough time for other smartphone companies to offer the app. For now, Nexus S users will have to find other Nexus S users to share the new technology with.

No word yet whether or not Apple plans to adopt the NFC technology as well. Depending on how the new PayPal app is received, PayPal may develop a business to consumer app too, which would make a lot of sense. If you happen to have a Nexus S, keep checking this site. We’ll let you know as soon as the new PayPal app becomes available.