The application lets consumers send money to anyone with a United States phone number. The application is free to download and it costs 25 cents for each money transfer.

“The iPhone has gained significant traction in the U.S.,” said David Schwartz, head of corporate and product marketing at Obopay, Redwood City, CA. “The time is right to provide users with one more way to turn this popular device into a payment solution, particularly with the holiday season around the corner.

“We’re pioneering a new, more social way of thinking about money and the iPhone application is a huge step towards this goal,” he said. “Our strategy is to facilitate the use of mobile payments to as many people as possible and the iPhone is a logical device to do this.”

Obopay is a mobile payments service in the United States that lets consumers get, send and spend money on their wireless device. The company has partnerships with major industry players such as Nokia, AT&T, Verizon Wireless and MasterCard.

Money manager
Consumers can send money to anyone over the age of 13 and track how they spend the money from within the application.

The application also features a full transaction history and the ability to receive money free of charge, regardless of the amount.

From within the application, consumers can set up accounts to automatically deposit the funds they receive into their own bank account without having to manually intervene. They can also request money from contacts and receive a push notification when they get a request for money.

The application also lets consumers check the status of a request at anytime.

Mr. Schwartz said that while the application will be helpful for anyone with an iPhone, parents will benefit the most.

“Family money management is something every parent is cognizant of,” Mr. Schwartz said. “With this iPhone application, parents can monitor children’s spending and make real-time transfers to and from family accounts, while children can send requests for emergency money to their parents, which can be acted upon in seconds.”

Small and medium-sized merchants such as gardeners and contractors can use the Obopay platform to be paid instantly.

Obopay also offers a companion MasterCard prepaid card, letting iPhone users have up-to-the minute awareness of their available balance and recent transactions.

Mr. Schwartz said that the main challenge that the application addresses is increased discoverability and making it easier for consumers to use.

“We have designed a rich, colorful, secure and easy-to-use application for existing account holders as well as iPhone users looking to continue to extend the capabilities of the device to make it a breeze to send and receive money,” Mr. Schwartz said.

“This applies to small merchants, families looking to manage the kids allowance and anyone who basically wants to simplify the management of their money,” he said.