USAA customers will be one of the first users to be able to cash checks using nothing more than their iPhones.

USAA, a bank and insurance company, has created a new iPhone App that leverages its existing technology to recognized digitally scanned copies of checks. The addition of an iPhone App increases USAA’s mobile subscriber reach and could expand its customer base from the current number of 1,000,000.

“We’re essentially taking an image of the check, and once you hit the send button, that image is going into our deposit-taking system as any other check would,” said USAA’s Wayne Peacock.

The App has been available on the App Store since May but has recently added the feature to take a picture of a paper check and have it cashed instantly. It would be beneficial for users to take a picture with an iPhone 3GS thanks to its improved 3.2 Megapixel camera. While USAA mainly serves military customers, anyone can sign up for its banking services.

A demo of the App is available after the jump

Via: iLounge