The newly released 2.0 version of PayPal’s iPhone app [iTunes link] can transfer money to another iPhone when you bump the two handsets together. Don’t worry, though; you probably won’t do it by accident.
With this app, you can either enter the e-mail address of your friend’s account or bump your phones together to download the necessary info. Then you enter the amount and send. Your friend can also request money by bumping his or her phone against yours.
Other new features in PayPal’s updated app include a tip calculator, the ability to transfer money from your PayPal account to your bank account and the option to request money from contacts bill or invoice-style. The app is available now, and it’s free.