PayPal has revamped its Android apps, making it more in-line with what its iOS nemesis has available.

Version 2 of the Android PayPal app adds the bump feature, whereby you can transfer money between two PayPal accounts simply by setting the amount to send and bumping two Android handsets together.

There is also a split the bill feature, which makes going Dutch (or English if you live in Egypt) easier than ever before. It calculates how much each person has to cough up and lets you collect money from different PayPal accounts accordingly.

PayPal Mobile's senior director, Laura Chambers, has predicted that with the growth of smartphones, people are increasingly going to want to pay for things with their handsets, resulting in a big boom for PayPal's mobile ventures.

"While we’ve had PayPal mobile applications since 2005, in the last few years we’ve seen usage soar", she said.

"Over the last six months alone, PayPal generated nearly twice the mobile payment volume it did in all of 2009, and we expect to close out the year with over a half a billion dollars of mobile payment volume".

The updated PayPal app is available now for free in the Android Marketplace.

Can you see yourself bumping handsets with your mates, or do you prefer to deal in cash? Let us know in the comments below.