The PayPal app (free, link) has added some compelling new features that make it easier to move money between PayPal accounts. At the foremost is a “bump” feature that fetches basic account info when two iPhones are bumped together, making the money transfer process a little quicker (the app has to be open on both phones, of course). See the video below for an example.

List of new features:

  • Bump: Easily start by bumping iPhones.
  • Withdraw funds from your PayPal balance.
  • Request Money: Get paid faster, it’s the easy way to ask for the money you are owed.
  • Split the Check: Instantly split the bill, calculate tip, and request everyone’s share.
  • Collect Money: Ask for contributions from a group for an event, gift, or cause.
  • Set Reminders: Never miss rent or a bill.
  • Refer the app to a friend

We like the idea behind this app a lot. How many times have you been at a restaurant and everyone only has only $20 bills or everyone wants to use a credit card. This way, one person could pay and the others just transfer the money into that person’s account. No fumbling with separate checks or making change.

However, we don’t like PayPal’s fees. It could be an expensive app to use in the long run.

The PayPal app is a free download from the iTunes App Store.