PayPal has announced a new phone-to-phone NFC payment application at MobileBeat 2011, offering Nexus S owners the ability to request and transfer funds between handsets. As of now, the functionality is quite limited because, as you’ve already guesses, there’s just a single smartphone with the hardware capabilities to take advantage on this planet, and there’s no phone-to-anything not a phone supported as of now. In other words, this is definitely something for the sued folks at Google to pay attention to. We’re also hearing that P2P transactions through PayPal are gratis “if using a bank account or existing balance in the customer’s PayPal account,” but no one’s coughing up details on what’ll be deducted in the form of fees when using a different method of payment. A video demo of the 48 second transaction awaits you after the break, but sadly, there’s no detail on how soon it’ll be made available to the public.