Online payment service PayPal has announced plans to allow customers to make payments and money transfers via text message.

PayPal Mobile will be launched over the coming weeks in the US, Canada and the UK, with other markets to follow at a later date.

The service will allow users to make person-to-person transactions, buy online from places such as eBay, or make donations just by sending a text message from their mobile phone.

PayPal will also allow users to call an automated service system and use voice commands to transmit funds.

For security reasons, the service will require users to register their mobile device on PayPal's website where they will be able to select a Pin to prevent unauthorised use.

PayPal is thought to have announced the service early, after the news leaked out when bloggers found links to test pages for the service.