Keep your cash. Bump my iPhone and PayPal will send me money.

Caveman simplicity, modern tech ingenuity: that’s what iPhone users will get in the new version of the PayPal application. Rather than deal with making ATM runs to get cash, writing out checks – people still do that? – or waiting for acquaintances to pay you back later, PayPal now lets people exchange money simply by bumping two iPhones together. That’s right; tap a phone and you’ve got a payment.

PayPal’s new Send Money feature integrates the core features of Bump, a popular iPhone app that lets two people exchange contact information simply by bumping two iPhones together. Information is shared between two phones wirelessly, making it possible for one person to instantly transfer money from his PayPal account to that of a friend or seller. There’s no more fumbling for change to evenly split a check or running to the ATM to buy something that’s cash only.

Of course, there’s an obvious caveat that could prevent this convenient way of transferring money: both users must have iPhones in order for it to work. However, with the iPhone being one of the most popular phones on the market and PayPal accounts being used every 1.2 seconds, there are likely to be plenty of instances in which bumping through PayPal proves useful. Imagine being able to pay a street vendor or delivery person when you’re short on cash and debit cards aren’t accepted.

PayPal is one of the most widely used methods for transferring money online, and the new iPhone app will make accessing and managing your funds a real world possibility. Here’s a video illustrating how the feature is just as easy as it sounds.

Download PayPal from iTunes