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Transfer money by bumping your iPhones
Tuesday, 16 March 2010, 21:56 IST
Bangalore: Paypal has created an iPhone application that lets you quickly divide a restaurant bill and send a friend the portion you owe just by bumping your iPhones together. Users log in with their PayPal credentials or with their cellphone number and a numeric PIN, and they can send or request money and manage their account on the phone, reports Claire Cain Miller for New York Times.
The new app is for individuals and small businesses, like a flower stand. PayPal plans to create an app for merchants in the future, said Eric Duprat, PayPal's General Manager for mobile. The application is free to download from the App Store.
One competitor of this application will be Square, Jack Dorsey's new start-up, which lets people turn their iPhones into credit-card terminals.
Just over a million people were willing to use PayPal's first iPhone application, which came out last year and only lets people send money and view their transaction history. The number of PayPal mobile transactions climbed from 24 million in 2008 to 140 million in 2009, according to Duprat.
PayPal's brand name will help it succeed as the field grows more crowded, Duprat said. "It is difficult to differentiate, except with your brand." In addition to person-to-person payments with cellphones, PayPal has ventured into mobile commerce. Last year, people spent more than $500 million using eBay's mobile apps, which incorporate PayPal.
