The GeoPayments feature enables customers to locate each other, within close range, and then 'pair' handsets and transfer money.

Non-FNB customers will also be able to download the app - available for iOS, Android and BlackBerry devices - although only to receive payments.

Earlier this year the bank extended the reach of it mobile wallet service beyond account holders by striking a deal with retail giant Pep.

Farren Roper, head, products and markets, FNB Connect, says: "Location based apps have proven to be very popular globally and are used largely for check-ins and rewards. The FNB app was initially launched with location based services for finding branches and ATM's, but applying it to payments compliments the bank's digital strategy."