Pingit launches today (16 February) and will allow Barclays customers to send and receive money via mobile, using only phone numbers and not bank details.
Barclays claims Pingit, which is aimed at friends, family members and small businesses, is Europe’s “first person-to-person” money transfer system.
Barclays will open up the transfer service to customers of other banks “in a few weeks” allowing customers from rivals such as Lloyds TSB and HSBC to use the app.
Currently, Barclays customers can send and receive up to £300 a day using the system, but non-Barclays customers can only register to receive money.
The bank plans to ramp up marketing in the next few weeks to push the service outside of its own channels, but is currently concentrating on communicating with existing customers through Barclays branches and its online banking site.
It will then focus on social media and digital channels when the app extends beyond its own customers and plans to launch a TV and above the line ad campaign later in the year.
The free to download app is available to Android, BlackBerry and iPhone users.
Antony Jenkins, chief executive of Barclays Retail and Business Banking says: “Barclays Pingit could revolutionise the way people send and receive money. For friends splitting the cost of dinner, repaying a borrowed £10 or people sending money to a son or daughter at university, it’s free, quick, convenient, secure, and easy to use.”