Our Mobile App of the Day today is Yahoo! Messenger for iPhone.

Rumors started floating a couple days ago that the update for Yahoo! Messenger for iPhone was coming with some cool new features, and now version 2.0 is ready for public consumption. Yahoo Messenger now includes free video and voice calling to your Friends list as well as low cost voice calls to any landline or mobile phone.

All of the normal IM functions are included as well, along with instant notifications and free SMS. The app can also run in the background, which allows for multitasking. Video calling requires an iOS device running 4.1 or later, so if you're ready to try out an alternative to Fring and Facetime then grab Yahoo! Messenger 2.0 on iTunes.