PayPal just updated their iPhone and Touch application. The PayPal 2.0 iPhone App now supports "bumping", basically if you and a friend have iPhones, a PayPal account, and the PayPal app you can send money to each other buy bumping phones when nearby. Seems like we are one step closer to replacing good old fashioned cash. Bummer.
"Beyond that proximity feature, PayPal 2.0 also adds a means of splitting up a restaurant check or other group purchases and “billing” other PayPal users for the amounts due. Bill reminders, money withdrawals, and other features you’d expect from the online payment system are still in place, too."