eBay-owned PayPal has sued Google over the recently announced Wallet mobile payment service. PayPal says Google misappropriated their trade secrets for its mobile payment business and blames Osama Bedier for stealing the secrets who is an ex-employee of PayPal and current employee of Google.

The statement reads “Bedier is now leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf. Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”

PayPal’s complaint also alleges another ex-PayPal employee, Stephanie Tilenius saying she tried to poach Bedier even when she was “under contract not to recruit employees.”

[Via Bloomberg]

Microsoft has added a new mode of payment for Xbox Live Marketplace users. Users with a PayPal account can now buy Microsoft Points but have to fulfill a few conditions. First and foremost, you need to be residing in US and secondly the service can be used to purchase MS Points only on Xbox.com and not from the console.

Users can associate multiple PayPal account with their Xbox Live and is as easy as adding up your credit card.

[Majornelson via Kotaku]