PayPal’s Check Deposit Feature for iPhone Might be the Future of Banking

 

PayPal has its own iOS app and it is quite good. A lot of people have PayPal accounts now for online purchases and money transfers and the company has helped spearhead the push into online money services. The newest version of PayPal’s iOS app (version 2.7) adds the ability for users to take pictures of checks they want to deposit and then wirelessly send them to PayPal. PayPal then deposits the checks into the user’s PayPal account in about 6 business days. Nifty? Yes it is.

I have not had a chance to try the new check depositing feature yet but do use PayPal for iOS quite a bit. The feature is certainly popular though. PayPal says that $100,000 worth of checks have already been processed by the service in the first 36 hours of its launch. That is a very impressive number.

While PayPal is certainly not the first company to offer such a feature, it does have a huge user base. Creating a PayPal account is free and the mobile app for iOS is a breeze to use. It even lets you forgo the annoyance of entering you email address and password every time you start it by setting a PIN number. Type in the PIN and you are ready to start doing things in your PayPal account. Now if only my bank would get with the program too.

Pretty much all of the features the PayPal website has are available through the iOS app. To access the new check deposit feature, tap the ‘Tools’ button in the lower right part of the screen. Then tap ‘Add Money From Checks’. You will then be brought to a screen with a little blurb describing the process and a button to ‘Continue’. Tapping continue activates the camera mode and you then take pictures of the front and back of the check. Once you are satisfied with the pictures you have taken, you then enter the amount of the check and tap ‘Process Check’ and voila. Your money shows up in your PayPal account.

Six business days is a bit of a long time to wait, but the potential for fraud with this is enormous. Make sure you also carefully read the terms of use for the service. It is pretty short as far as TOS go, and easy to understand. Make sure you keep your paper checks for at l5 days and wait for it to show up in your PayPal account before destroying them.

If you have an iOS device, a PayPal account, and are not using PayPal for iOS, go grab it for free from the iTunes App Store. Let me know what you think of the new feature. This going to be the future of mobile banking? I wish every bank had something like this. It would make things a lot easier.

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