PayPal Puts Dough in Your Palm
Summary
That scenario should be a reality by September, when Confinity, a Palo Alto, California software start-up, launches PayPal, an application that will allow individuals to "beam" sums of money between handheld devices such as mobile phones, Palm Pilots, and pagers. Thiel says he is confident PayPal will succeed because the program allows individuals to make payments to each other, not just to retailers or financial institutions. Concerns about security have also hampered the growth of digital transactions, but PayPal relies on the work of two renowned cryptologists. Thiel says PayPal uses elliptical curve cryptography, a type specially developed for small devices. Because PayPal uses strong encryption, Confinity is obliged to apply for an export license from the US government to offer the program outside the United States.