Abstract: A system (and a method) for electronic financial transactions includes a sender and a recipient each having an electronic wallet, a sending bank and a receiving bank each having a host application system and an authentication server, and a wallet management center with a host application system and an authentication server. The sender uses its electronic wallet to send an encrypted payment instruction directly to the electronic wallet of the recipient. The recipient can perform a second level encryption of the instruction for submission to the wallet management center for authentication. Once authenticated, the wallet management center notifies the recipient and submits payment instructions for clearing by the corresponding sending and receiving banks. Payment authorization is authenticated directly by the sending bank without involvement of the wallet management center. For enhanced usability, payment details may be originated from the recipient to the sender using proximity or online messaging.