MailTXT works by connecting users' mobile phones to the internet momentarily, while they send and receive text messages to and from other MailTXT users.
To use the , readers must download a MailTXT Java application onto their phone, but there is no subscription fee and no contractual commitment.
The Daily Mail will give users a 0.5p credit for every MailTXT sent and received to offset any tariff that they may incur from their mobile phone operators for transferring data on the web. However, payback will only be made once a year, starting in February 2009.
The paper is hoping the free service will encourage readers to access its mobile-based web portal, allowing it to build a more interactive mobile community and gather information about its readers.
Guy Zitter, Daily Mail managing director, said: "The latest findings from our research panel of mid-Britons show that as a group, they are very smart with their money and are confident users of the latest technology and services. We believe that MailTXT combines the best of both.
"Aside from giving our readers a vital money-saving service, MailTXT provides us with the platform to find out more about them, so we can continue to deliver the kind of quality content and products that appeal to them most."
Future plans for the portal include introducing premium, paid-for services such as browsing the latest news, receiving information alerts, shopping and entering competitions and promotions.