PayPal have updated their iPhone application and the new version brings many improvements.

One new feature is “bump capability” which enables you to transfer money between friends just by bumping your iPhones together. This is very useful for transferring money when someone doesn’t have any cash and is a welcome addition to the PayPal experience.

Another new addition is the ability to send a request for payment to a contact, which means it’s now easy to request the money you are owed. Also you can now withdraw money from your PayPal account into your bank account on your iPhone, which is a major plus.

Other useful additions include a bill splitter and tip calculator for when you are in restaurants and PayPal for kids which links a child’s account to their parents.

You can download the latest version of the PayPal application for your iPhone from the App Store right now.