BilltoMobile gathers momentum for mobile payments plan

by Mercator Advisory Group 0

Hand of woman paying with contactless credit card with NFC technology, finance concept

Mobile payments is nolonger the unknown frontier – particularly for digital content. We aremoving well beyond the mobile operator portal model that’s been an expensiveroute for digital publishers and content owners, taking well over 50% of thesale in some cases. BilltoMobile/Danal’s approach leverages the strongbilling platform of the mobile operators and could help game publishers andin-game publishers, in particular, with an easy payment option. Knowingthat Apple likes its 30% of the take, it will be interesting to see how or ifiPhone game publishers will be able to take advantage of BilltoMobile forafter-the-App-Store purchases.

Mobile payments firm


is on the expansion path, adding new merchants to itselectronic commerce program and hiring new executives.

The San Jose,Calif.-based company, a subsidiary of South Korea’s Danal, has added more thana dozen merchants to its mobile payments program since it announced a deal withVerizon Wireless in March. The company formally launched its alternativepayment platform — which lets you buy things online using your mobile phonenumber for billing — in May.

The service isunique in that it doesn’t use premium text messages — which cost a lot of money— for its infrastructure. Rather, it ties directly into the carriers’ ownbilling, customer service, authentication and processing systems. That allowsBilltoMobile to charge lower fees of 15 – 17 percent, compared to 45 – 50percent for rivals. With BilltoMobile, a user shopping at an e-commerce siteclicks on the BilltoMobile button while checking out and then enters his or herphone number and mobile billing zip code. Then the user gets a one-timepasscode via text message, which is then entered into the online payment pageto complete the transaction.

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