PayPal has launched a new iPhone app for people to make and take payments on the go.

The app, which has been completely overhauled, takes the rather unusual but clever step of adding Bump support into the mix as well.

Bump is an app that allows you to share contact details with people by holding your phones and gently bumping them together. The app already lets you share photos and contacts, compare friends, or become Facebook friends in seconds, and now pay each other.

The PayPal app, will let you completely manage your PayPal account via the phone as well as quickly transfer money into other people's.

Expect this to be big at the boot or yard sale in the summer.