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Pansexual is a gender identity people may use to label themselves when they are capable of falling in love and/or being sexually attracted to people all along the gender/sexuality spectrum. The term initially arose in psychoanalytic circles among people who believed that sexual energy plays a part in all human interaction, and is the primary source of energy in our lives. It has since been adopted by some people as a more inclusive term than bisexual, a term that implies that there are only two genders (male and female). Pansexuals, on the other hand, can be attracted to transmen and women, intersex people, androgynous people, and cisgendered people, among others.
People often get pansexuality and polysexuality confused. The prefix "pan" comes from the Ancient Greek for "all" or "any," while "poly" means "many." Therefore, while pansexuals may be attracted to people of all gender identities and biological sexes, polysexuals are merely attracted to multiple - but not all - genders and/or sexes.
That said, many people who see sex, sexuality and gender as more fluid concepts object even to more inclusive labeling.