If I had a Nexus S, I would probably be wondering what to do with the built in NFC chip. Up until now, there hasn't been much to use it for other than Google Wallet (and that's only if there is a supporting merchant nearby.)
Thanks to Paypal's new peer-to-peer payment system, that is about to change. Now, all you need in order use the NFC chip is a friend with a Nexus one. As long as you both have the Paypal application installed on your device, you can add a widget to your homescreen for quick payments. Once that is set up, all you have to do is enter an amount in the widget to request it. Then, tap the two Nexus devices together and have the sender enter their password. When the devices buzz, the money has been transferred.
In theory, I think this is a great way to handle transactions with people around you without cash. The only downfall at this point is that both the recipient and the sender have to have Nexus S devices and Paypal accounts. Hopefully the next iPhone has an NFC chip, because that would largely alleviate the problem.
Even if it is not really practical now, I still like seeing NFC technology made useful, and hope it starts catching on.[VentureBeat]