Whilst Bendigo Bank in Australia is worried about Google and PayPal, Commonwealth Bank responded this morning by launching the first really innovative mobile app for payments that I've seen since BBVA's Strands.

The app is called "Kaching", and allows users to pay with NFC and Facebook to almost anyone.

On the bank's website, the key features listed include:

Pay to mobile

Splitting the bill for dinner? With our new app, you can send money to your friends as easily as sending a text message.

Pay to email

 Chipping in for a friend's present? Make a payment on the go by using your email contacts or by directly entering an email address.

Pay to Facebook

Purchasing concert tickets for your friends? Enjoy the convenience of paying your Facebook friends using Kaching.

Contactless

Transform your iPhone 4 or 4S into a contactless payment solution for goods and services. All you need is an iCarte case, available from the Commonwealth Bank. You can use it wherever PayPass is accepted.

Although just on the iPhone to begin with, it’s a dramatic move from a bank, so much so that Commonwealth thought it worth doing a global media event around it.

You can watch the event by clicking here.

Does this set the standard for other banks to follow?