Obopay is a new service that combines a prepaid Mastercard with a cell phone. Basically, you would dial up your Obopay phone number, check your balance, input your daughter's phone number and the amount you wanted to send, and hit enter. The money would then immediately be available on your daughter's Mastercard. With Obopay carrying cash is a little less relevant. Other potential uses for Obopay would include splitting a dinner bill or paying back a friend.

The story behind Obopay is interesting. Carol Realini, the founder and a retired entrepreneur, noticed that while doing volunteer work in Africa that many people carried a cell phone but didn't carry a wallet. The "light bulb" went off and the idea of combining phones and "electronic wallets" was born. Upon returning to the United States she raised venture capital, hired seasoned telecom executives, and launched Obopay in 2005. The prepaid Mastercard component is handled through Citibank and other partners include most of the major phone carriers.

Now, of course, Obopay is not free, and users should be aware of the charges. Currently, there is a 1.25% fee to add money to the account and a .10 fee each time you send money to someone, whether via mobile phone or internet. Domestic ATM cash withdrawals are free but there is a $2.75 international ATM withdrawal fee. Miscellaneous charges could apply for other services.

So, it appears that the "electronic wallet" is now upon us and other funds transfer companies like Western Union, Xoom, and iKobo now have an additional competitor. With over 200 million cell phone users in the United States alone, we expect Obopay to be around for a while. To find out more about Obopay and other unique ways to send and receive funds, be sure to visit the ManagingMoney.com Banking Center.