Feeds

eBay boosts mobile payments with Zong acquisition

PayPal in your pocket for US$240 million

High performance access to file storage

Mobile payments outfit Zong is to be assimilated into the PayPal world, following the announcement that eBay is handing over US$240 million in cash to acquire the company.

Zong runs the kind of operation that looks like someone anybody could manage: buyers enter their mobile phone numbers when they want to buy something from a site, receive a transaction code, complete the purchase, and pay for the purchase on their phone bill. Proving that it’s not such a tough nut to crack, Zong claims 250 carriers worldwide, but developed its system on a fairly frugal $27.5 million in funding.

The convenience of the arrangement – plus its attraction to carriers, who get to add another billable event to their operations at the cost of carrying the purchases for a while – has proven irresistible to eBay.

The acquisition also bolsters PayPal’s relationship with Facebook. The Social Network™ was already accepting payments through Zong, and last year began abandoned its rumoured “Facebook wallet” development work to sign on with PayPal for payments.

According to Techcrunch, Zong also claims big names including Disney’s Playdom, Big Fish Games, Sony Online Entertainment and Zynga as customers.

PayPal clearly sees mobile payments as something of a Holy Grail. When Google unveiled its mobile platform in May, PayPal responded with a lawsuit, saying that The Chocolate Factory had head-hunted developers from its own project to steal its secrets.®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.