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In this paper we propose an Enhanced Mobile SET (EMSET) protocol with formal verification using Mobile Agent technology and Digital Signature with Message Recovery based on ECDSA mechanism. Mobile Agent technology and Digital Signature with Message Recovery (DSMR) based on ECDSA mechanism provides in proposing EMSET protocol in Mobile Networks. Mobile Agent technology has many benefits such as bandwidth conservation, reduction of latency, reduction of completion time, Asynchronous (disconnected) communications. Digital Signature with Message Recovery based on ECDSA eliminates the need of adopting PKI cryptosystems. Our proposed protocol EMSET ensures Authentication, Integrity, Confidentiality and Non Repudiation, achieves Identity protection from merchant and Eavesdropper, achieves Transaction privacy from Eavesdropper and Payment Gateway, achieves Payment Secrecy, Order Secrecy, forward secrecy, and prevents Double Spending, Overspending and Money laundering. In addition to these our proposed protocol withstands Replay, Man in the Middle and Impersonation attacks. The security properties of the proposed protocol have been verified using Scyther Tool and presented with results.