Paypal is suing Google over claims the technology firm misappropriated trade secrets from PayPal's mobile- payment business.

A lawsuit filed yesterday in California alleges former PayPal executive Osama Bedier, now at Google, stole PayPal's confidential information. Stephanie Tilenius, another ex-PayPal executive now at Google, violated contractual obligations by recruiting Mr Bedier, PayPal said.

Mr Bedier "is now leading Google's efforts to bring point of sale technologies and services to retailers on its behalf", according to the complaint. "Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers".

Both companies are trying to move into storefronts from online transactions and build their mobile businesses. PayPal is working with major retailers to develop a new type of point of sale system - the equipment next to cash registers where consumers swipe credit cards.

Google yesterday unveiled two services to let consumers pay merchants and download coupons with a tap of their mobile phones.

Aaron Zamost, a Google spokesman, said in an e-mail that the company hasn't received a copy of the suit and can't comment until it has reviewed it.

PayPal also alleges that Mr Bedier, who left the company in January, discussed a job with Google while simultaneously leading negotiations to make PayPal a payment option on Google's Android Market. He didn't disclose the job-related talks, a breach of his fiduciary duty, the company said.

Ms Tilenius, who left Ebay in 2009, was under contract not to recruit employees, PayPal said. She messaged Mr Bedier on Facebook's social-networking website, telling him she had a "huge" opportunity for him, and sent him e-mails and text messages offering advice while he interviewed for a position, according to the complaint.

Bloomberg