It's a common plight: You're at dinner trying to split the bill with friends, and no one has cash on them. Enter Venmo, a Philadelphia startup that lets you connect your bank account to your phone and transfer money on the fly. Once you link your account to a friend's, you can transfer money to them by text or through Venmo's app.
"We started using it with each other, then we invited a few friends and it turned out they really liked the product," cofounder Iqram Magdon-Ismail says of Venmo's creation. He envisions roommates using it to split the rent, or friends digitally ponying up for movie tickets.
The Venmo app is now in beta testing, with plans to officially launch in mid-2011. CNNMoney readers can give it a whirl by signing up through this link.
NEXT: Accept credit card payments on your phone
