SplashData’s File Magic recently received an update that adds a few new features including the ability to transfer files between two iPhones, making the application even more appealing to folks who feel the need to turn their iPhone into a mobile storage device.

When File Magic was initially released, it simply offered a way to transfer various files between a computer and an iPhone. File Magic pairs up with SplashData’s desktop application which is available as a free download, to allow simple drag and drop file transfers. With the recently released 2.0 update, File Magic is able to do even more.

To transfer files between two iPhones, both devices need to have File Magic installed and updated, and they both must be on the same Wi-Fi network. If both users are not on the same network, File Magic now gives users the ability to email their files as attachments.

The update also adds password protection for files stored in File Magic for the overly cautious crowd.

The list of supported files is pretty impressive. File Magic supports almost every type of text, video, music and image file format you could imagine. iPhone supported file types can also be displayed on the device itself.

File Magic currently retails for $4.99 at the App Store. If you were previously on the fence about purchasing such an application, File Magic’s new features should help make that decision a bit easier.