I have to admit I am a little reluctant to use my phone as a digital wallet. (To many data security seminars from the days I worked for a bank).This however shows a slightly different approach that actually has the potential to gain some traction.
UK restaurant chain Pizza Express have partnered with Paypal to allow meals to be paid for using a specific Pizza Express iPhone app.
The Pizza Express app includes a range of functionality like reserving a table, using coupons, etc., but one of the more interesting elements of the application is the direct integration of Paypal which allows you to pay for your meal directly through the Pizza Express application. The video below explains how the Pizza Express Paypal application works: