Today PayPal brought a major update to their Android app, which brought, among other things, the ability to cash checks by taking a picture of them. This has been a killer feature for their iPhone App now since October, and starting today you can use your phone to add checks directly to your PayPal account, or transfer it to your savings account, skipping a trip to the bank!

The PayPal app, has let handle simple transfers between your PayPal and bank accounts for some time now, but the latest update has put a big focus on getting users the features they have been asking for. First and foremost among these is PayPal’s mobile checking that iOS users have been enjoying for some time now. The process is fairly straightforward, allowing you to take a picture of your endorsed check, which is put in your PayPal account with the ability to transfer the cash to your bank baked right into the app.

The app has plenty of other cool stuff built in for you to do with your newly deposited check. There are options to donate straight from your PayPal account, or bump two phones together to exchange contact information or money. Another feature we loved was the “split the bill option.” You can put in a total, tip percentage, and the number of people to split the bill between. The app then lets you adjust the fraction of the bill each person is paying, and put in their email or phone number to send requests to their account for a cash transfer back to you while you cover the bill. Waiters and waitresses everywhere just lept for joy.

The other big feature included with the update is the ability to store the app on your SD card for any device running Android 2.2 or later. While a lot of people may take the concept of using your SD for extra app space for granted, it has personally saved me from having to delete apps more than once. Reading over comments in the Android Market though, it sounds like people updating their already installed version of the app have had trouble with this feature, but simply uninstalling the old version before installing the new one seems to be the fix to that problem.

So go get the app and cash checks to your heart’s desire! Just don’t endorse your checks with people taking pictures on their cell phone over your shoulder…