PayPal iPhone App Now Allows For Photo Check Deposits

USAA and Chase already got involved in cashing checks via mobile scanning, but when PayPal gets involved, that's huge for the industry. PayPal's iPhone app has recently been updated, and the new version allows users to scan their checks in order to have the funds deposited immediately in their PayPal account. The catch, of course, is that the money is deposited in the PayPal account and not directly into your checking account. You'll still need to login and request a withdrawal in order to actually have the funds transferred to your bank account.

The service works like this: you take a photo of the front and back of your check, and then they show up in your PayPal account. PayPal also recommends holding onto the check for 2 weeks in case something doesn't clear. The app just launched a week ago, and already $100,000 worth of checks have been cleared. That's pretty impressive; imagine how much that would grow if PayPal expanded this to BlackBerry and Android phones.
Tags:  iPhone, PayPal, App, money