Much like the desktop site, the PayPal mobile app has always supported sending money to friends, but it was a secondary feature. With the growing popularity of peer-to-peer payment apps like Venmo (which PayPal also owns), PayPal has decided to redesign the app and place a greater emphasis on sending money to friends.
The new layout makes it simpler "for customers to view their balance, get notifications, and move money from nearly wherever they are," as PayPal says in its announcement. The update is rolling out now to "select markets," including Australia and Italy. Other regions will receive the new design over the coming weeks.
If the update hasn't rolled out to you already, you can download it from APKMirror.