Bump Pay lets you pay a friend by typing in the amount of money you'd like to send, and then tapping your phone against your friend's phone. Money is sent via PayPal, and the only transaction fees you'll be charged are those coming from PayPal. If you have enough money for the transaction in your PayPal account or have your PayPal account linked to a bank account, then those fees will be zero.
Bump says the traditional Bump app has been downloaded by more than 80 million people and is currently used to share millions of contacts and photos each day.
Bump Pay is a product of Bump Labs, the company's internal incubator of sorts. In Bump Labs employees work on some of their latest ideas that may potentially result in standalone products or incorporated into the traditional Bump app. Some are ideas that originate in hackathons, while some are ideas the company has been pursuing for some time. Bump Pay was originally a tool that created for internal use by the Bump team to help split up their own lunch bills.