PayPal Strikes Gold on iPhone "Deposit-By-Picture" feature
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.
Grizzled Veteran
Joined: Oct 1999
Fraud much?
Holy cow, assigning the same value to an "image" of a bearer instrument as to the instrument itself is insane! Good luck with that! Anyone who has had a bad experience with PayPal should warn people to read the small print on the conditions of use for this service very carefully indeed. It won't be PayPal who loses in a fraud situation, I'm guessing they can claw back the money at any time in the future, whether they actually have the right to or not.