Abstract: In a system according to one embodiment of the present invention, the system includes a database for storing a merchant profile containing information associated with a merchant bank account. The system includes an application server that when a request from a merchant device for payment by the user for a transaction is received, the application generates an authorization message and sends it to a mobile device associated to the user. The application server will further wait to receive an acknowledgement message from the mobile device and will generate a validation message and send the message to the merchant device when an acknowledgement message is received. The application server further effectuates the transfer of funds from a user financial account to a merchant bank account.