ZunguZ is a new Facebook application launched by two South African entrepreneurs that allows you make payments securely via your Facebook account.

The payment app connects banking systems to Facebook’s social graph and thus simplifies the process of transferring money to your friends and withdrawing funds electronically.

ZunguZ works in three simple steps:

1. Enter your mobile number

2. Verify with a PIN sent to your mobile phone

3. Update your details

Users can simply load the ZunguZ application on Facebook, click on their contacts and send money. Recipients would need to create an account to access their funds.

According to Bandwidth Blog, ZunguZ’s co-founder, Rob Sussman said that: “ZunguZ has the potential to influence the purchasing decisions of over 850 million users across the world.”

With ZunguZ, you can pay, receive or transfer money with your contacts on any social network using credit card, PayPal or many other payment methods.

The coolest thing about this is that you don’t pay any transaction charges.

ZunguZ now becomes the first peer-to-peer payment system that allows a Facebook user to pay another Facebook user without transaction fees, without a bank account or an email address.

The company is backed by heavy weight VCs in Silicon Valley such as Justin Rockefeller, Mack Levitt and others and currently has its offices in Palo Alto, where Facebook is based.