160 Characters is reporting on the launch of a new SMS-based mobile payment system:

Anam Mobile and TR2 Communications have launched a service that will allow operators to offer global money transfers via SMS.

Using an application called #CASH - developed and owned by TR2 Communications, it can be used globally for international funds transfer and local P2P payments.

So how does it work?

To send money a user writes an SMS that begins "#cash" followed by the amount to send, then selects the person they want to send it to from their address book. Anam’s Smart Services platform then diverts the message to the #Cash Application Server for processing.

The person sending the money is then sent a text message with information to call an IVR which reads out the transaction who then confirms the transaction is correct by entering their PIN.

The money is transferred once pin-checked and once complete a text message confirmation is received. The recipient of the transfer receives a text message to tell them they have been transferred money.

We're still early along in the mobile payments game, but expect to hear more and more announcements like this one in the future.

See 160 Characters Association for more.

Technorati Tags: mobile payments, sms