There are some things money can’t buy. For everything else, there’s MoneySend.

MasterCard is about to go head to head against PayPal after unveiling a new app for the iPhone and iPad called MoneySend.

The free app, which is available from the App Store now, allows anybody in the U.S. to transfer money between accounts. Senders and receivers can either use a MasterCard account or a bank account, or may create a virtual prepaid account through Bancorp Bank that is linked to an existing MasterCard credit card or checking account.

Users can then make and receive payments through the application. Senders incur a fee, whereas receivers do not. The application is expected to take some of the heat off PayPal, whose application is currently the most popular means of transferring and receiving money through an iPhone or iPad.

It seems that MasterCard is making a massive effort to expand into the mobile payments market – especially following the company’s recent announcement regarding a definitive plan to ‘mobilize’ credit payments. So, all in all MasterCard are going to try to take a shot at PayPal. It’ll be a tough competition – and for the most part, I can’t imagine many current PayPal customers will be switching over to MoneySend any time soon. Transferring money from an iDevice is not always a comfortable business, and for many familiarity will breed a sense of security.

Yet on a personal I can’t deny that it’s something of a relief to see another major company partake in the mobile money transfer sector. At the very least it takes a little more of the power away from PayPal and gives iPhone and iPad users a wider option of choice.

[via NYTimes and TechCrunch]