It looks as though PayPal may actually be one of the forerunners in the shift to make smart phones like the iPhone a device for financial transactions. While this has been the dream of many who are hoping that eventually the iPhone will replace credit cards and other forms of physical, though representational, currency modules, it is still going to make those with a desire for privacy and security scream.
The new PayPal iPhone app that was just submitted for approval would allow for the deposit of checks directly into your PayPal account simply by taking a picture of it. This PayPal check deposit feature would likely be tacked on to the existing PayPal iPhone app and would further integrate this web-based banking survey into the commercial consciousness.
Though PayPal is still recommending that users hold on to the physical check for a couple weeks after the photo deposit, it still seems as though the most basic problems have not been anticipated yet. Would this make fraud an easy and localized problem? Will it further alienate PayPal from the rigors that are normally associated with banking? With identity theft find a new foothold? Seeing as this new PayPal feature should get approved by Apple at any moment it seems as though we will find out shortly.