updated 08:30 pm EDT, Fri October 8, 2010
iPhone app updated, takes in $100,000 overnight
A new feature in the iOS PayPal app's latest version is surprising the company with its popularity. Just 36 hours after it launched v2.7 -- adding the ability to "deposit" checks merely by taking a picture of the front and back -- the company has seen deposits exceed $100,000.
After agreeing to certain terms and conditions, users can choose the new "Add Money From Checks" tool and photograph the front and back of checks they receive, then the money will be added (after a hold period of approximately six business days) into their existing PayPal account. Users must retain the physical check for at least 15 business days, but after that can simply destroy the document (shredding recommended for security purposes) or file it.
PayPal was not first to market with such a feature for mobile users, but their large userbase and strong start seems to indicate that the option is still new to tech-savvy consumers and that there is pent-up demand for such a service (which has been available to businesses for some time). While reviewers on the App Store complain about the long delay in clearing, the convenience is apparently a factor for users too busy to stop by a bank to make deposits.
The feature (powered by BankServ) and the app are free. PayPal v2.7 requires an iOS device running 3.1 or higher.