Australia's Commonwealth Bank took the wraps off of its new mobile payment product, Commbank Kaching.

Billed by Commonwealth Bank as "a world first in mobile technology," the new application provides Commonwealth Bank customers with a wide array of mobile banking, financial and payment services.

The Commbank Kaching product includes peer-to-peer (P2P) payments using email addresses or mobile phone numbers as well as "social payments" through a user's Facebook account. Commbank Kaching is also the first mobile contactless payment program in Australia using NFC technologies at the point of sale and even provides basic mobile banking services such as checking balances, paying bills and transferring money between accounts.

"This banking breakthrough marks a significant milestone in the evolution of how we pay and receive money from each other," said Commonwealth Banks' CIO Michael Hart in the announcement.

David Lindberg, Commonwealth Bank's executive GM for Cards, Payments and Retail Strategy said the Commbank Kaching application would reduce the reliance on traditional payment methods and transform and simplify day-to-day payments to anyone, including friends, family, mainstream retailers and small businesses.

"Mobile and online social payment is the next step in transaction technology," Lindberg said in the announcement, adding, "Now, for the first time, Australian consumers will no longer have to rely on cash or cards to make payments to family, friends or even businesses."

The payment functions use an assortment of methods to facilitate fund transfers. For NFC payments at the point of sale, Commbank Kaching uses MasterCard PayPass terminals. Users also have to purchase a case for their mobile devices from iCarte that contain the NFC chip. Customers are offered the option to purchase the case when they activate the NFC functionality on their Commbank Kaching account.

"Commbank Kaching represents the next exciting evolution for contactless payments, giving customers the power to pay with their smartphone at any of the 42,000 PayPass terminals across Australia," MasterCard Australia Country Manager Andrew Cartwright said in the announcement.

To process P2P payments, a unique code is sent to recipients through an email address, Facebook contact or mobile phone number. The code can be claimed online by the recipient within 14 days.

Commonwealth Bank is also marketing the new product to small merchants as a way to securely and quickly handle electronic transactions.

Kelly Bayer Rosmarin, Commonwealth Bank's executive GM for business products and development, said Commbank Kaching is perfect for those who operate on a mobile basis and who require a quick payment or might not find cash the best option. Additionally, Bayer Rosmarin said that transactions are instant when the small merchant and customer are both Commonwealth Bank customers

Commbank Kaching is secured through various methods, including password-encryption technology that protects customers' personal data in case a device is lost or stolen; no personal banking information is stored on the phone. The app is authorized on only one device, and purchases are limited to $100. 

Commbank Kaching will be available soon for devices running mobile operating system iOS 4.3 and higher with the iCarte cover compatible with iPhone 4/4S. However, Commonwealth Bank said the app has not been submitted to Apple for approval to be offered through its App Store yet. 

A promotional video from Commonwealth Bank demonstrating the new product is below: