PayPal has updated its app, adding new features as more PayPal mobile payment options pop up in restaurants and retail stores around Australia.

Using the app, users can link credit cards and bank accounts to push payments from these through PayPal, whether that be bill payments or money transfers.

But while the PayPal app refresh makes it easier to make payments in store and transfer money to friends via mobile, it also adds some new functionalities.

Two months ago, PayPal Australia had announced that it was be partnering up with EatNow, OrderMate and Beat The Q, as well as Sonoma Bakery, Mexican restaurant Guzman Y Gomez, fashion retailer Glue store and educational retailer Crayons, with hopes to expand.

One of the new features of the app, Shop, allows customers to locate participating stores, check-in and then pay via the PayPal app.

According to PayPal, there are currently over 2,000 Australian restaurants and cafes that also have the "order ahead" function, which should make early morning coffee runs a little bit quicker.

Digital wallet future

PayPal Australia's director of strategy Andrew Rechtman said that for digital wallet payments to take off, they must offer more than just new ways of paying.

"PayPal is investing in technology that simplifies the lives of our customers by addressing real customer pain points, giving them the flexibility to pay how they want, when they want," Rechtman said.

"PayPal is driving innovation that brings benefit to the consumer, which is what our refreshed mobile application will enable."

But PayPal is not the only one looking into this space, as Mastercard launched its MasterPass earlier this year and Visa announced its new V.me digital wallet service, which is due to launch later this year.

On top of all that, NFC smartphone payments are still being looked at.