Customers can use the Obopay service by downloading the m-payments application to their hand sets. The system works on any Web-enabled mobile phone.

Users can use the system to receive money from any Obopay user. Funds are deposited immediately over the Obopay network so recipients get instant access to the money. Customers can also send money to almost any mobile handset. Transactions occur instantly and the Obopay balance is updated immediately.

In addition to enabling mobile payments, the Obopay service has a companion debit card that can be used to pay for purchases in retail outlets or for making cash withdrawals at ATMs. Purchases and withdrawals are recorded immediately and instantly on the Obopay balance.

Carol Realini, CEO of Obopay. "The service we offer consumers today is like none that has ever been available in the US. And as we work in the coming months to bring financial services, wireless carrier and retail partners into this new world of mobile commerce, consumers are going to continue to discover new and exciting ways to use Obopay on their mobile device to get, send and spend money."

The vendor recently raised $10 million in a series a financing round that included investments from Redpoint Ventures, ONSET Ventures and New York-based Richmond Management.

The Obopay launch comes just days after PayPal said it was launching a new mobile payments service that will allow its customers to make purchases and transfer funds using SMS text messages.