Nowadays, client-to-client applications such as online chat (e.g. MSN) and SMS (Short Message Services) are becoming increasingly prevalent. These client-to-client applications are revolutionizing the way we communicate. Three-party PAKE (password authenticated key exchange) protocols provide a means for the two communicating parties holding passwords to establishment a secure channel between them with the help of a common server. In this paper, we propose an efficient three-party PAKE protocol for the client-to-client applications, which has much better performance than the existing generic constructions. We also show that the proposed protocol is secure in a formal security model.