Abstract: A system and method for collaborative peer-to-peer fund transfer that allows the transfer of funds without requiring a bank account. The present invention uses existing infrastructure to allow senders to initiate fund transfer to designated recipients. The system receives a transfer request from a sender via an SMS Gateway, retail kiosk, web interface, or bank transfer, and processes a transaction. The system communicates a unique code for confirmation to the designated recipient, who can use the unique code to redeem the transferred funds. The transferred funds are then associated with a prepaid card, debit card, or gift card, or disbursed in cash form.