System and method for initiating an electronic funds transfer using a mobile device

The invention is directed to a system and method for initiating an electronic funds transfer. The system includes a first mobile device, a payment engine, and a payment repository. A consumer is given a notification of a sales transaction. A first mobile device preferably includes functionality to obtain an authorization from the consumer to the electronic funds transfer based on the notification, instantiate a transfer entry form to obtain a transfer entry package, where the transfer entry package comprises the notification, a verification of the authorization, and consumer financial account information. The payment engine is operatively connected to the first mobile device and preferably includes functionality to generate the transfer entry form based on the authorization, and transmit the transfer entry package to a depository financial institution, though the transfer entry form could be generated elsewhere in the system. The payment repository is operatively connected to the payment engine and includes functionality to store a record of the transfer entry package and the authorization. The payment engine preferably transmits the notification to the consumer via the mobile device. The notification may be via SMS, MMS, webpage text, electronic mail, a video or audio message or instant message. The mobile device preferably records an oral authorisation of the transaction.