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Photo Punch is a fun, whimsical app that lets you combine elements from and add effects to photos. It's nowhere near the most powerful photo-effects app on the market, but it is really good at a few specific functions.
Everything starts with a "Punch Shot," which is essentially a cut-out foreground element of a photo. You can cut out people, objects, and pretty much anything else from a photo, and save them to your Punch Shot folder, to be pasted onto a background at your convenience. This means you can do things like put yourself on a beach or place funny objects in your hand. The possibilities are endless. And once you're done, you can share your finished photos with other Photo Punch users, as well as on Facebook and Twitter.
To create a Punch Shot, just hit the Punch button, pick a photo (or take a new one), and start tracing around the object you want to cut out. The more accurate you are here, the better, as once you're done tracing, Photo Punch's autoselection feature will kick in and make adjustments to improve your selection. This is Photo Punch's biggest selling point.