Payment on mobiles: eBay repurchases Zong to integrate it into PayPal

Payment on mobiles: eBay repurchases Zong to integrate it into PayPal
Zong proposes a system of payment of the purchases via the invoice of its operator. Acquisition rises to 240 million dollars in cash. Paypal is reinforced thus on the sector of the purchase via the mobile, alternate with the payment without contact.

eBay announced yesterday the repurchase of Zong, a specialist in the payment on mobile via the invoice operator, for 240 million dollars in cash. The goal is to integrate this platform into PayPal in order to reinforce its position in the mobile payments.

Zong makes it possible to the consumers to pay their purchases since their telephone by deferring them on their invoice operator. The company wove a network of 250 operators which enables him to touch 3,2 billion terminals.

Alternative to the NFC

“the trade is in change. With the mobile telephones, we walk with a shopping centre in our pockets”, declared Scott Thompson, president de PayPal.

After having counted on 1,5 billion then 2 billion, PayPal recently announced that it should treat 3 billion dollars of payments on mobiles in 2011. The 3 billion dollars of payments on mobiles are divided into 2 categories.

There are, on a side, the users who are useful of the mobile applications PayPal to transfer from the money between them, and, other, those which carry out purchases since their mobiles while being useful of PayPal as solution of payment. It is on these last transactions that the subsidiary company of eBay perceives an income.

Acquisition is strategic for PayPal. At the hour when solutions NFC start to develop, the giant intends to defend his positions. The use of the NFC is still marginal because it implies the deployment of compatible cases in the tradesmen.

PayPal is thus reinforced in terms of alternative to the payment without contact. According to a study of GfK, the service is used the most today by the mobinautes to carry out their purchases. It would not be a good thing if that changes.
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