When you meet your friends, just open up the app and scan each other's QR code. Once done, Phewtick randomly gives you five different amount of points, the largest over 100, 000 points, and the smallest is just a measly 3 points. Naturally, expect the probability of striking a large amount of points to be much lower than smaller amounts.
Under the Points tab, you can check how much your collected points are worth in your local currency, and once you collected a certain amount of points, Phewtick allows you to either cash it out to your PayPal account, or to donate it to charity.
They charge a commision of 15% though, so don't freak out when the amount you cashed out is not equal to what's shown in the app. Don't complain though, it's free money anyway.
I find Phewtick fun, not just for the money. It's actually more because it brings people together and serves as a good ice-breaking topic for not-so-close friends.
Naturally, there's concerns that it could be a hoax. I did some poking around and this company seems legit. I have friends who since then have cashed out their money as well, so no worries.
So how can a company pay you to use their app? Simple. Advertisements. Advertisers pay Phewtick to display ads in the app. Some of the money raised through advertisements are channeled out back to the users, and the remaining obviously to fund the company.
This app requires an internet connection as well as Location Services / GPS to be turned on, so if it's sucking up your battery life, just turn off the Location Services / GPS once you're done using it.