PayPal says Google stole its ideas for a new service that is trying to turn smartphones into digital wallets.
The allegations emerged in a lawsuit filed on Thursday in a California court, after Google unveiled its mobile payment service in New York.
The complaint alleges Google lured away PayPal executive Osama Bedier earlier this year to obtain trade secrets that are now being used in Google's phone-as-a-wallet service.Bedier, now Google's vice president of payments, was among those showing off the technology in New York.
The suit also alleges Bedier was interviewing for a job at Google while he was also handling negotiations for PayPal to handle sales in Google's application market for phones running on its Android software.
PayPal is owned by eBay Inc.