To use the free service, customers log on to Wells Fargo online banking, add the account number of the person they want to send money to - up to $1000 a day - and make a first-time transfer.

Subsequent transfers can be made from customers' handset by logging onto WF.com and following the prompts, or online from their computers.

Arah Erickson, head, retail mobile banking, Wells Fargo, says: "The added ability to transfer funds while on the go will be especially helpful for parents who have kids in college this fall as well as for students who need quick access to money at the last-minute to cover living costs, textbooks, or to split an expense with a roommate."

The bank's mobile site - which works with BlackBerries and iPhones - also lets customers review account balances and activity, transfer funds, pay bills and find the nearest ATM.