How would you like to repay a friend using PayPal by just tapping phones? That’s what is possible using the the updated PayPal Mobile for Android app and if (this is a big “if”) you both use one of the few NFC (Near Field Communications) Android phones such as the Nexus S. Sending money by tapping phones is done using the new Request Money with NFC.

New in the Android Market: Updated PayPal Mobile App Featuring P2P NFC Capabilities

Sending money as a gift, to repay a friend or split a bill does not incur a transaction fee (when using a bank account or PayPal balance). If you are in the U.S., you can deposit a check to your PayPal account by taking a photo of the check.

You can find version 3.0.1 of the updated PayPal app in the Android Market:

PayPal Mobile