A
system (and a method) for electronic financial transactions includes a sender and a recipient each having an electronic wallet, a sending
bank and a receiving
bank each having a host application
system and an
authentication server, and a wallet management center with a host application
system and an
authentication server. The sender uses its electronic wallet to send an encrypted
payment instruction directly to the electronic wallet of the recipient. The recipient can perform a second level
encryption of the instruction for submission to the wallet management center for
authentication. Once authenticated, the wallet management center notifies the recipient and submits
payment instructions for clearing by the corresponding sending and receiving banks.
Payment authorization is authenticated directly by the sending
bank without involvement of the wallet management center. For enhanced
usability,
payment details may be originated from the recipient to the sender using proximity or online messaging.