With PicTwo, you can combine two photos, layer them and blend them to create a new composition using your iPod/iPhone/iPad devices.
The process is simple and clear. Select two photos (take new or select from your library) and just follow the menus: Position, Blend Mode, Eraser, Process, Share. Oh, you can also add Textures.
Once you have merged, blended and processed your photo, you have a choice of sharing with Instagram, Twitter, Facebook or Save to your photo library, Recycle (to use again in PicTwo), Print, or Transport your creation to other apps on your device. My deice for instance gave me an array of options Picfx, PhotoForge2 iPhoto, Halftone, Bump, Evernote, Dropbox, Photo Suite, Shutterfly, Camera+ and Filterstorm.
In the composition above, I reversed-rotated photo 2, added to photo 1 and then transported to PhotoForge2 to frame it.