Abstract: The Universal Financial Transaction System (UFTS) is an improved electronic payment system which uses encrypted software e to make financial transfers electronically. The UFTS operation is not limited to personal computers like the current online payment system. Moreover, it can be downloaded and operate on any electronic device such as mobile phones, PDA's, pocket computers, personal computer, electronic cash register or point of sale system. This improvement makes the UFTS as user friendly as any credit or debit card and as functional as any online banking system; thus it can be used to purchase items in any retail or online business and it can be used to transfer funds to any individual or entity among United States currency and any foreign currency. The UFTS does not charge the end-user for the financial transaction instead it generate its own revenue through transmittal of advertisement to the user's electronic device.