PicFont is a free web service which helps you to insert text, add comments to picture, canvas, shape etc and everything within 10 seconds. You can upload you own image or select the image from a URL to add text. Once adding of text is done, you can download it back to your PC. You can add text on 3 different modes : over a picture, over a canvas (which represents a space where you can select a background color), or over a shape (badges, signs etc).
The editor has options to add text, select font, size, color and also the rotation of text. It can even undo 2 previous actions on the image. Once you add a text, you can move to the desired position before it is fixed.
Apart from add text to images, you can also add to canvas which is a space with a background color. You can specify thew height and width of the canvas.
There are also few built in shapes available where you can add text. Since there are many fonts available, you can preview them by clicking on the fonts window. Overall PicFont is a good way to add text to images, this can also be used for watermarking images.