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PayPal for Android 2.0 sends payments in a 'Bump'

An update to the PayPal for Android app takes mobile payments deeper into the Android platform.

A new version of PayPal for Android smartphones is bringing its spin on mobile money transfers to Android.

PayPal 2.0 for Android adds Bump technology, which debits money from one user's account and credits another when two phones are tapped together. Of course, both smartphones need a Bump-enabled PayPal app to work. PayPal with Bump is currently available on the iPhone, so buddies wishing to settle accounts can digitally do so despite using different mobile platforms. Digital payment of this sort is a much more elegant solution than Square, as cool as that credit card-reading peripheral may be.

In addition to adding a Bump component, the update allows you to withdraw money from your account and request a payment--two key features that had previously been absent. It also inserts a tip calculator to split the bill (and request your companions to fork over their share). PayPal 2.0 also adds a scheduling component so you can set payment reminders for rent and bills.

You'll find the free PayPal 2.0 for Android app in the App Market.

PayPal for Android 2.0, with Bump
The new app looks slick, and contains Bump technology to transfer payments on the spot. Screenshot by Jessica Dolcourt/CNET