The service works with an existing bank account to let users buy and pay for items and check balances online using their mobile phone. Subscribers use a PIN to instruct the MoBank system to authorise payments direct from their debit/credit cards.

The company says new services will soon be launched that let users manage their money, pay bills, make person-to-person transactions, and transfer cash between accounts. Additional services such as a special date reminder alert, and a budget tracker to help customers keep on top of spending are also in the pipeline.

Initially the tool will only be available to iPhone users but the firm says versions for Blackberry and Google Android handsets will be introduced within a year.

Dominic Keen, MoBank, says: "The Internet has revolutionised how we shop and manage our money. The next step is to take this to mobile phones. MoBank has been designed to make people's lives easier and save them time by providing banking services on the move."

The service will use a bespoke hosting platform from NTT Europe Online while transaction fee services technology from txttrans means that no banking data, card details or PIN are stored on the mobile phone itself.

Yodlee is providing current banking services and Portrait has been tapped for a CRM platform and database.

MoBank CEO Steve Townsend worked at UK Internet bank Egg for eight years as innovation and customer services director. Co-founder Dominic Keen is a former venture capitalist and one-time head of venturing at Egg.

You can see a Finextra video interview with MoBank CEO Townsend here.