ASB customers can now make payments to their Facebook ‘friends' thanks to an enhancement to the bank's mobile app.

Although the payer has to be an ASB customer, the payee can be with any bank - and doesn't have to give out their account information.

According to Anna Curzon, general manager, brand experience and digital channels for ASB, when the user downloads the app, it will automatically update itself with that user's friend list.

If the user wants to make a payment to a friend, they simply select the recipient, enter the amount and a description, and hit ‘done'. The app then sends the recipient a Facebook notification directing them to a secure website at which they can enter their account details and collect the payment.

Curzon says the tool spares users the hassle of asking for bank account numbers when transferring funds.

"This is another step towards a cashless society in New Zealand," Curzon says.

"Mobile and online banking innovations mean customers no longer need to rely on the traditional wallet – they can instead use ‘the bank in their hand', giving them greater control over how they manage their money.

Facebook payments are an addition to the range of payment options already available on ASB Mobile, including mobile numbers and email addresses.

The app is available on Apple and Android smartphones, with a dedicated iPad version scheduled for launch later this year.