AT&T Takes a Kinder and Gentler Path to Mobile Digital Commerce

by Mercator Advisory Group 0

Wireless giant AT&T is trying to expand its access to digital goods revenues like in-game purchases, as well as more traditional digital content. Its past efforts at attracting digital publishers were modest because, among other things, it asked for 40% or more of the revenues. Today, largely because the iTunes and App Stores have set the benchmark, publishers are willing to give up 30 points. So, to speed up the process and simplify its own life, AT&T has signed up with mobile payment service providers Zong, Boku and Billtomobile. These entities work directly with the publishers. AT&T just has to integrate its billing system to these merchant aggregators. For AT&T, costs go down, reach goes up.

U.S. carrier AT&T is exploring more ways to allow mobile and smartphones to be used in transactions, with its latest move to soon allow customers to purchase digital music and movies with a telephone number. The carrier has formed a partnership with Zong, Boku, and Billtomobile to allow its customers to pay for digital goods with a mobile number rather than having to enter credit card or PayPal billing information, and those charges will appear on a customer’s phone bill.

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