It does! AirDrop in iOS 7 lets you exchange files like pictures, Passbook passes, and contacts between two iOS users over Wi-Fi or Bluetooth, without any configuration and (as Apple’s Craig Federighi pointed out) without the need to walk around and “bump” phones with people. AirDrop appears in the Share sheet, along with more conventional items like Mail and Messages; you can even use it to share multiple items to multiple people at once. Files end up right in the appropriate app and are encrypted during transmission. You can also change permissions to determine whether everybody can share with you, or only certain people nearby (or people in your contacts).