New app transfers money with the tap of a phone

Mon Apr 9, 2012 5:08am EDT
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By Natasha Baker

TORONTO (Reuters) - Splitting the bill at a restaurant or settling road trip expenses can be as simple as tapping two phones together to transfer the funds.

Bump Pay is a new app for person-to-person mobile payments developed by Bump, the makers of the app of the same name that allows the instant transfer of contact information and photos.

"You type in the amount you want to send, you bump your phones together and you'll be immediately taken to the PayPal confirmation page," explained David Lieb, the co-founder and CEO of Bump.

With over 85 million downloads in the past three years of the original Bump app, the company is expanding its focus to other areas using their design philosophy, which is to minimize the friction involved in exchanging information and data between people.

And they're starting with the mobile payments space.

"The pain point we found ourselves saying is ‘I don't have any cash on me and I don't know how to give you money for those concert tickets yesterday'" said Lieb.

Rather than focusing on the retail mobile payments space, an area already crowded with products like Square, PayPal Here and Intuit's GoPayment, Lieb said that the company is concentrating exclusively on person-to-person payments.

"Right now we're focused on this problem of making it easier for friends and colleagues to pay each other. Certainly that could lead into other things we could do, but that was the area we found the most pain points in," he explained.   Continued...