PayPal has long had a nice albeit somewhat limited iPhone application available in the App Store.Back in September, they gave the software a much-needed redesign while expanding on feature set with useful new capability like the ability to pay at local shops, save offers and order ahead, to name a few.

Today, the team followed up with another feature-laden update.PayPal 5.2 for iPhonedoes away with skeuomorphism in favor for a much cleaner look that fits nicely into the overall iOS 7 aesthetics. More importantly, you are now free to withdraw cash, pay using QR codes and more…

PayPal 5.2 for iOS (iPhone screenshot 001)

First up, the new iOS 7 style app icon.

Most of my international transactions are handled by PayPal so I was pleased to learn that the latest build lets me withdraw cash from my PayPal balance to a bank account. Previously, I had to visit the PayPal interface on the web to withdraw funds.

In addition to just way sleeker and nicer appearance, customers can now scan a QR or bar code to pay at select merchants, making mobile payments even easier and frictionless. Finally, a new option allows you pick among a few start screen templates, each optimized for the specific types of information.

PayPal 5.2 for iOS (iPhone screenshot 002)

Just to give you a feel of the scope of redesign, this is what the app used to look like:

Horrible, no?

PayPal 5.2 for iOS (iPhone screenshot 004)

Your changelog for PayPal version 5.2:

• Need to withdraw some cash from your PayPal balance to your bank? You can do that in your Wallet• Check out our new iOS7 look and feel• Paying just got even easier! Scan a QR or bar code to pay at select merchants• Choose your start screen for fast access to the info you need• We’re still hard at work finding and fixing bugs

PayPal is available free in the App Store.

The download weighs in at 26MB, requires iOS 6 or later and unfortunately still lacks the native iPad UI.

PayPal 5.2 for iOS (iPhone screenshot 003)

PayPal 4.5 for iOS (iPhone screenshot 001)