Check out this innovative PayPal vending machine on exhibit at the PayPal X Innovate 2010 developers conference and spotted by Adam Flaherty over at the MAKE website.
Watch the video after the jump for an in-depth run through how the system works.
The prototype PayPal Vending machine has been designed by Ray Tanaka and his team from PayPalLabs using a mechanical candy dispenser, a couple of Arduino Duemilanove, a WiShield, relay, proximity sensor, and LED display.
Via MAKE