By Marcus Leach

Internet search giant Google is being sued by PayPal amidst claims they stole technology for turning smartphones into digital wallets.

PayPal claims that Google obtained trade secrets from Mr Osama Beider, the former PayPal executive who is now Google's vice president of payments.

This news comes on the back of Google unveiling plans to allow customers to pay for their shopping on mobile phones.

At present neither Google or Mr Beider have commented on the case, yet Google still intends to launch its system in the US this summer.

PayPal, in their lawsuit, also allege Mr Beider was in job talks with Google at the same time he was leading the negotiations to make PayPal a payment option on Android, the same system Google intends to offer their 'digital wallet' on.

"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," PayPal said in its court filing.

"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."