Abstract: A person to person cash transfer transaction method using mobile phones comprising the steps of: —sender sends a transfer command to the recipient containing the transfer amount, sender's PIN and the recipient's mobile number; —telco verifies if the sender's mobile phone cash account has sufficient balance to effect the transfer of the amount of virtual cash being transferred; —telco deducts the sender's mobile phone cash account with the amount of virtual cash to e transferred and credits the same amount of recipient's mobile phone cash account; —sender and recipient receive SMS acknowledgment with confirmation number from telco; —recipient if registered may not use the virtual cash for any financial transaction.