Say goodbye to writing checks, carrying around cash and IOUs. Bump Technologies, creators of the popular sharing app Bump recently released a new mobile payment app called Bump Pay. With this app, users who have PayPal accounts can now easily send and receive money by bumping smartphones with other users.

Bump Pay is easy to use. No setup or configuration required as it uses your existing PayPal account. All you need to do is download and install the app, type in your PayPal email address, specify the amount you want to send and bump phones with the person you’re sending the money to. Each payment is securely handled and processed by PayPal and if your PayPal account is linked to a checking account, you don’t have to pay any transaction fees.

Screenshots:

Here’s a short YouTube demo video from Bump Technologies on how Bump Pay works:

Although Bump Pay offers a free, cool and convenient way to exhange money, it does have some disadvantages. First, you and the person you’re exchanging money with both need the Bump Pay app installed on your smartphone. You can’t send the money and let your friend install the app later on. Second, both parties need to have a PayPal account. Third, both parties need to physically bump phones to exchange money. There’s no option to exchange money wirelessly – via email or text message. So in some instances, it would be easier to just use the PayPal app.

For now, Bump Pay is available only for iOS devices but could probably be made available to Android and other mobile platforms in the near future. Download Bump Pay from the App Store.

Got an email yesterday from PayPal welcoming me to their new priority service program called PayPal Advantage. Previously, this priority service program was exclusively available to users who’ve spent more than $5,000 with their PayPal accounts in the past 12 months but now, they’re opening this service to other active PayPal users.

Users who are enrolled to the PayPal Advantage priority service program enjoy exclusive benefits and perks like – priority customer support, faster dispute resolution, exclusive events, member savings, special rewards and many more.

PayPal Advantage Benefits

PRIORITY CUSTOMER SUPPORT

• Dedicated Support Agents – Your calls to PayPal Customer Service will be answered by our most senior US-based customer
  service specialists.
• Faster Dispute Resolution – Our agents provide you with dedicated support to fast track your disputes to resolution.

COMMUNITY

• Exclusive Events – Meet key members of the PayPal team as well as fellow Advantage members at exclusive events.
• PayPal Advantage Live (New) – Experience all the ways you can use PayPal and hear about our future plans.
  Stay tuned for upcoming cities and dates.
• Members-Only Community (Coming Soon) – Connect with other PayPal Advantage members, post & vote on ideas you have
  For us, and participate in Ask the PayPal Expert sessions.
• Member E-Newsletters – Stay informed on special deals, upcoming events, industry trends, and insider tips.
• Member Spotlight – Read about our most inspiring Top Customers as they share their stories with the world.

PROMOTIONS and REWARDS

• More Ways to Use PayPal (New) – There are many ways to use PayPal beyond checkout. Every month we’ll give you an extra reason to try a new way to use PayPal. Find out this month’s reward.
• Student Accounts (New) – Set up a recurring allowance for a new or existing Student Account and receive $15 cash
  back into your PayPal account. Learn more terms.
• Promotion Previews – Hear about seasonal offers before anyone else.
• Special Rewards – Receive rewards like cash back offers or merchant discounts.

I am a very active PayPal user as I use my PayPal account and PayPal Debit Card not only for work but also for personal stuff. Fortunately for me, I haven’t had any problems with PayPal since I joined them and I hope it stays that way. Nevertheless, its good to know that I would get priority customer support in case I have any problems and also enjoy other exclusive benefits and rewards with the PayPal Advantage program.

Anyone else who got the same email from PayPal? For other PayPal users, what do you think of PayPal Advantage? Is it something that you will use or something you think that will benefit you as a PayPal user? Please share your thoughts.

While updating my iPhone apps earlier today, I noticed an update for the PayPal iPhone app – version 3.0.1. When I read the changelog or update details, it mentioned that the version included an important security update. It didn’t specify what type of security update so I decided to do a little research. Found out from CNET that the update was a patch for a security hole in the iPhone app.

The now patched security flaw could have allowed malicious users to do a “man-in-the-middle” attack, tricking users into thinking that they’re accessing the real PayPal site when actually they aren’t and intercept transaction data sent between the iPhone and a Wi-Fi hotspot. This can happen when PayPal users access their account using an unsecured Wi-Fi network.

Aside from patching the security flaw on the iPhone app, PayPal has also announced that it will provide a 100% reimbursement for any fraudulent activity caused by the flaw.

If you have the PayPal app on your iPhone, make sure that you immediately upgrade to the latest version. If you haven’t, do not access your account until you’ve installed the update. And just to be sure, avoid or never access your PayPal or bank account on your mobile device over an unsecured Wi-Fi network.

The latest version of the Paypal iPhone app is now available in the App Store.

[via CNET News]

During the PayPal X Innovate Developer Conference last week in San Francisco, CA, PayPal announced the launch of their new micropayments program called PayPal for Digital Goods. This new micropayment program will offer a faster, safer and more cost-effective way to send and receive micropayments – a major problem in the digital goods industry.

Facebook will be PayPal’s initial partner for the PayPal for Digital Goods micropayment program and will be used to purchase digital goods like Zynga’s FarmCash and other Facebook games and applications. Other companies and websites that will be using PayPal for Digital Goods include FT.com (Financial Times), Autosport.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream.

This is good news for both merchants and consumers. For news and media companies, developers and bloggers like me, this is great news because PayPal for Digital Goods allows us offer and sell digital content on our websites and blogs and be able to receive payments automatically and have instant access to our PayPal funds.

I’m also a consumer and this development is also good news for me and other consumers because with PayPal for Digital Goods, we could quickly, easily and safely purchase digital goods like music, software and games online. For current PayPal users like me, this new micropayments program extends the value and usability of PayPal.

OFFICIAL PRESS RELEASE

PayPal Unveils New Payment Solution for Digital Goods
Industry Leaders Facebook and FT.com Using PayPal to Simplify Micropayments for Digital Content

INNOVATE 2010, SAN FRANCISCO – Oct. 26, 2010 – PayPal today announced the upcoming availability of PayPal for digital goods, a new in-context, frictionless payment solution that lets consumers pay for digital goods and content in as little as two clicks, without ever having to leave a publisher’s game, news, music, video or media site. The online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game, PayPal’s new solution solves a key problem for the digital goods industry by offering a faster, safer and more cost-effective way to send and receive micropayments globally.

The new solution offers PayPal’s competitive fee structure for micropayments, with pricing at 5 percent plus 5 cents for purchases under $12 — lower than the fees typically charged by payment processors in the digital goods industry. Every time a customer purchases content, publishers and merchants get paid quickly, giving them fast access to their funds. PayPal for digital goods will be available late fall this year.
At PayPal’s second annual Innovate developer conference, Facebook Chief Operating Officer Sheryl Sandberg announced that Facebook will integrate PayPal’s new digital goods payment flow to make PayPal the way to make purchases on Facebook.

Several additional companies, including Autosport.com, FT.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream announced that they are also using PayPal to monetize the growing opportunity in digital goods.

“Our readers want their news on demand, whether they’re on a laptop, a mobile phone or a tablet,” said Mary Beth Christie, head of product management at FT.com. “PayPal helps us provide the experience our customers expect, along with flexibility to experiment with payment mechanisms for subscriptions. This gives our customers the flexibility to pay for what they want, when they want.”

“The decision to purchase digital goods and content usually happens on impulse, so the act of paying needs to be as quick as that impulse,” said Sam Shrauger, PayPal’s vice president of global product strategy. “PayPal for digital goods is an ideal solution for game developers, newspapers, bloggers, media companies, and anyone who is looking to monetize premium digital content around the globe.”

Because PayPal for digital goods is built on PayPal’s sophisticated fraud prevention engine, developers don’t have to worry about building the systems required to protect customers’ sensitive financial information. PayPal is already one of the leading payment methods for digital goods, giving merchants global reach with 90 million accounts in 190 markets around the world. The company closed out 2009 with $2 billion of total payment volume for digital goods and reached $1.3 billion in the first half of 2010.

Innovate 2010 is the only developers conference dedicated to payments. The conference, at Moscone West in San Francisco from Oct. 26-27, brings together developers and industry experts to explore three main areas that are changing the way we pay: the phenomenal growth of mobile payments, the rise of social commerce and the move to Internet-enabled local payments.

Follow PayPal on Twitter: #xinnovate, @PayPal and @PayPalX. For additional information please visit www.paypal.com/digitalgoods, or www.x.com.

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 90 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company and is made up of three leading online payment services: the PayPal global payment service, the Payflow Gateway and Bill Me Later.

More information about the company can be found at PayPal.com. PayPal is headquartered in San Jose, Calif. and its international headquarters is located in Singapore.

I received my first PayPal Debit Card back in February of 2008. It had proven itself useful lots of times already and I’m very glad that I applied for one. My only regret is that I should’ve applied for it earlier.

A few weeks back, I received an email from PayPal informing me that they will mail me a new card because the one I have was going to expire this month – January 2010. Last week, I got the new card in the mail last week and just in time before my old card expired. First thing I did was to activate it and create a 4-digit PIN number.

Previously, the PayPal Debit Card had the name “Premier BusinessCard” on it but the one I just got doesn’t have it but instead has “Business Debit“. Also, the new PayPal Debit Card also has a new design. Check out the photo I took of the old and new debit cards side-by-side.

[Card numbers blurred out for security purposes]

Aside from those changes, the new PayPal Debit Card works exactly the same as the old one.

Application Requirements:

• PayPal user for at least 60 days
• Should have Premier or Business account
• Should register credit card with PayPal account
• Account must be linked to bank account in order to be verified

Benefits:

• Earn 1% cash back everytime you make a purchase (you have to be enrolled in the PayPal Preferred Rewards Program).
• 100% protection against unauthorized charges (fraud and theft)
• No annual fees

The PayPal Debit Card lets you withdraw money from any ATM and make debit purchases with your PIN number. You can also provide a backup funding source and as a security measure, there is a daily limit of $3,000.00 USD spending limit and a $400.00 USD ATM limit.

Its been almost two years now since I blogged about my first PayPal Debit Card and its unfortunate that PayPal account holders in the Philippines and other countries outside the United States still can’t have one. I don’t know if PayPal has any plans of changing that or how long it will take before they make it available in areas outside the US.

If you’re a PayPal account holder in the US and still don’t have a PayPal Debit Card, I strongly suggest that you apply for one. It gives you more purchasing options with your PayPal account, you can earn cash back and there are no annual fees so you have nothing to lose.

Click here to apply for a PayPal Debit Card or to learn more about it.