Touching phones to send pictures

Hello everyone

So I just got my new iPhone 5, and I was with some of my friends (I don't know what phone they have) and I saw something brilliant. My friend took a photo and then held their phone to my other friend's phone, then they touched the photo and it instantly went on to the other phone, within like 3 seconds

How do I do this on my phone? I couldn't get it to work

Thanks guys