PayPal 2.0 Uses Bump to Send Cash

[Paul Daniel Ash]

2010 is shaping up to be the year that your iPhone becomes your wallet. Square (from Twitter founder Jack Dorsey) is entering public beta, and card-swipe giant VeriFone as well as upstart Mophie have products coming out that let you use your iPhone to make credit card transactions. Now, the grtandaddy of all online payment systems, PayPal, has come out with an update to its free app. Taking things to the next level, PayPal 2.0 uses the Bump API to let users exchange cash by bumping phones, just like swapping contact details and Facebook profiles. The absence of a dongle makes this app much more attractive than the competitors, but don't rush to declare this "the end of cash:" you still have to cough up a fee for every PayPal transaction.

PayPal's new app adds other features - such as tools to help you split restaurant bills, calculate tax and tip and access your payment history. But the Bump integration is the feature that will probably build the most buzz. Bump started as a way for users to exchange contact info by bumping their phones together, but last year opened their API for other services. When two phones are bumped, they send the information to Bump's servers, which pairs the two phones and manages the data transfer. Both phones need to be running the PayPal app when they bump in order for a transfer to take place: you can't accidentally bump someone on the street.

The coolness factor that made Bump so popular is also likely to give this app wide acceptance. PayPal's name recognition should give people confidence that their transactions are secure, and this would be ideal for small transactions between individuals, where exchanging credit card information just wouldn't make sense. By comparison, Square is a dongle that attaches to the iPhone and allows users to accept credit card payments, and is somewhat off-putting: do I really want somebody to swipe my card on their iPhone?

The downside to either scheme is the cost. Both Square and PayPal add a percentage of of the money that gets transferred as a fee. Square's fee structure is unknown, and while sending money with PayPal is free, you have to pay to use your credit card or to withdraw money you've received. Still, just as we've all become used to paying ATM fees to access our own money, it may become more and more commonplace to pay for the convenience of bumping.

[rud3bwoy]

anyone using the new paypal app and push working for them with it?i got some money but did not get any push notify with paypal

[StealthBravo]

Im so sick of paypal! I wish another company would provide some competition

[extremzocker]

saw this update yesterday, havent tried it yet tho.
as for the paypal hate ive heard from many people and friends that they had issues and that paypal has too much control over you account.
but i had not had any problems so far

[dillonsmith9147]

Im so sick of paypal! I wish another company would provide some competition

How could you hate Paypal?

[billchase2]

I haven't tried out the PayPal app. Looks like it might be time to give it a shot.

[StealthBravo]

How could you hate Paypal?

Because if there is a payment dispute they always side with the buyer.

[MetallicaFan1991]

^Lol that's a good thing. No harm to seller and you get your item back??

And don't sell dodgy stuff xD

[StealthBravo]

I hear you but a lot of people buy stuff on eBay then refute the charge with their credit card claiming whatever and they place the burden of proof on the seller. The buyer doesn't have to prove squat. I sold a 2G on eBay and jailbroke and unlocked it before sending it. I sold it for $475. The guy got it and said that it wasn't unlocked (he must have restored it or didn't follow my directions). I told him if he was unhappy I would refund his money, just send me the phone back. He refused to send it back and also refuted the charges on his credit card. My paypal goes $475 in the negative. Paypal said that they wouldn't fight it and I was out of luck. I they are going to be a credit card merchant then they need to act like one.

[one1]

Slow *** app. Takes forever.

[rhekt]

^ the customer IS allways right stealth. just kidding, but not really. but sorta. ;]

[StealthBravo]

^ yea its ok. I was pissed off at the time but it's cool now. I still prefer to use other sources like amazon payments

[TheOnlyest]

My company sells a ton on ebay, and your right, scumbags dispute charges on us all the time... We have not had a chargeback stick yet!! We have won every case. If you follow the seller protection shipping policies, you can never be charged back.
I discovered that these losers usually get refunded by their CC company, get the item for free, and PayPal eats the loss. But it only works once, the user is then banned from PayPal for life.

I hear you but a lot of people buy stuff on eBay then refute the charge with their credit card claiming whatever and they place the burden of proof on the seller. The buyer doesn't have to prove squat. I sold a 2G on eBay and jailbroke and unlocked it before sending it. I sold it for $475. The guy got it and said that it wasn't unlocked (he must have restored it or didn't follow my directions). I told him if he was unhappy I would refund his money, just send me the phone back. He refused to send it back and also refuted the charges on his credit card. My paypal goes $475 in the negative. Paypal said that they wouldn't fight it and I was out of luck. I they are going to be a credit card merchant then they need to act like one.

[santaf]

oh man that sucks stealth =/ i agree there should be a competitor then one will charge less when you get money and stuff. that would be nice hah.

[cranie]

Im so sick of paypal! I wish another company would provide some competition

Then you should check out letssuepaypal.com There is a class action heading to federal court over their questionable practices.