Las Vegas (NV) - Paypal announced a service for new mobile phones, which will allow users to send and receive money. Called PayPal Mobile, the service will require users to to have an active Paypal account as well as a phone that is registered with the service. Payments and purchases can be made by sending a text-code to Paypal, who then calls back to verify the purchase.

Paypal Mobile users can send money to other Paypal Mobile phone accounts or purchase items that have the "Text2Buy" logo showing. To send money, users have to send a text message to user "729725" (PAYPAL) containing the amount of money and the mobile phone number of the recipient. Paypal calls back to verify the PIN number of the buyer. For phones that do not support, text messaging, calls can be made to 1-800-4PAYPAL and the same information can be typed in via the phone’s keypad.

Other than the standard Paypal account fees and regular carrier charges, no extra charges will be added to mobile purchases, the company said. Users who are sent money can retrieve the funds by going to the Paypal website.

According to Paypal, the financial information is stored on secure servers and the account information will remain secure, even if the phone is stolen or lost.

Paypal Mobile are offered initially only in the United States and Canada.