This is pretty huge. There's a ton online already - go to PayPal, sign in, add a new phone to your profile and mark it as mobile. The site will offer you the chance to confirm the phone so you can use it to make payments, then you enter a pin number, and an IVR system will call your phone and prompt you to type in the PIN, then you can send money. There's a a whole new section of PayPal for mobile online now, flash demos are still pending.
Not only can you send money person-to-person, they're also doing something they call "Text To Buy":
Anytime you see Text to Buy next to something you want to buyâ€”on a poster, in a magazine, at an eventâ€”you can securely order the item by text message. Use your phone to buy items like CDs, DVDs, books, electronics, accessories and much more.
Q: Where will I see these Text to Buy ads?
A: Look for Text to Buy in magazines and newspapers, on TV, billboards, posters, websites, and elsewhere.
Holy shit! That's awesome! I was just expecting a personal payments service, that they're enabling mobile purchases as well? Rock on. eBay could have just changed the world (again).
I've got other comments about the service, that I'll hold off on for now until I've played with it a bit more, but this is very, very cool.