eBay announced that it is acquiring Zong, a leading mobile payment solution company for a total of $240 million in cash. The mobile payment zone has already been getting heated up, with Google jumping in with its Wallet and Square hooking up with Apple.
Zong offers an easy solution to pay for purchases using mobile phones or computers through direct carrier billing. Customers just need to use their phone numbers and in a few seconds Zong verifies that number and clears the payment on the customer’s existing wireless service account. Zong is already an international player in mobile payments for digital good with services in 21 languages and 45 countries. Announcing the acquisition of Zong in its press release, eBay said that
We believe that Zong will strengthen this value by helping us reach the more than 4 billion people who have mobile phones, giving them more choice and security when they pay.
The acquisition of Zong could be a huge boost for eBay, as PayPal can offer more choices to pay – virtually anytime, anywhere. eBay hopes that
Both Zong and PayPal help to enable digital goods merchants to increase conversion, because they offer a faster, easier way for consumers to pay without leaving the merchant’s site.
Scott Thompson, president of PayPal, said
Commerce is changing. With mobile phones, we walk around with a mall in our pockets. PayPal helps to make money work better for customers in this new commerce reality – no matter how they want to pay or what device they’re using. We believe that Zong will strengthen this value by helping us reach the more than 4 billion people who have mobile phones, giving them more choice and security when they pay.
David Marcus, CEO of Zong, said
Our customers love the convenience of paying with their mobile numbers – a number they know by heart, and a device that they always have with them. We look forward to extending our services to PayPal’s more than 9 million merchants around the world. And we’re committed to working with carriers and merchants to help them drive more sales across devices.