A payment service turning mobile phones into mobile wallets has been launched.

The Paybox system enables people to shop online or send and request money from friends.

It operates like a direct debit card in a mobile phone and is compatible with any bank account, mobile phone and mobile network.

When buying goods from a-registered online retailer, users enters their mobile telephone number into the retailer's existing payment system instead of their credit or debit card number.

The online retailer's system is integrated with Paybox's system online which calls the user's mobile phone to request a four-digit PIN to authorise the transaction.

Once authorised, Paybox informs the retailer and debits the user's current bank account as with a normal direct debit payment.

Sending someone money works in a similar way.

www.paybox.co.uk