The new mobile phone application will allow payments to be made to other mobile users
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New application: Mobile to mobile payments now possible

16 February 2012 Last updated at 07:14 GMT

A new phone application will allow people to send and receive money simply by using their smartphone.

Customers of a leading High Street bank will be able to transfer up to £300, just by knowing their recipient's mobile phone number.

Rory Cellan-Jones reports.