Dwolla Corp. yesterday announced that it is launching a new product called Proxi, which will allow users to send and receive cash-based mobile payments based on their proximity to another connected device.

The technology cuts out the need for special hardware, such as near field communication chips, which doesn’t come standard on most mobile phones. Users can now make and receive payments within designated “Spots,” where their Dwolla account will recognize the nearest Dwolla accounts and allow for transactions to and from those accounts.

The product is currently in a private beta phase, and is intended to provide a framework for future innovation in the company, a spokesperson said. For more information, click here.