Verizon to offer BilltoMobile payments


Verizon Wireless will launch Danal’s BilltoMobile payment service (see MPW 101) later this spring. This will enable Verizon customers to charge digital goods to their monthly mobile bills when they buy content online content that is downloaded and consumed on their PCs from Danal’s network of merchants.

The mobile payment service will have a $25 per month spending limit, along with content and parental controls for individual accounts. Participating online stores include game sites, social networks and virtual worlds. Users will also be able to buy subscriptions to popular online games.

To conduct a transaction, consumers click on the BilltoMobile button during checkout then input their mobile numbers and mobile billing zip codes for subscriber authentication. A text message is sent to the consume’s mobile phone with a one-time pass code. Once consumers input this pass code online, the transaction is completed. The entire process takes about 15 seconds. Neither pre-registration nor links to credit cards or bank accounts are required, apparently.

Danal claims to be the dominant mobile payments provider in Korea, where credit card penetration rates are even higher than in the US, yet 80% of all mobile subscribers chose to use direct mobile billing, and up to 60% of all online digital content purchases are billed directly to mobile accounts.

Danal also claims that the merchant fees associated with the BilltoMobile payment service, are lower than usual mobile billing rates. Danal will be announcing some merchant agreements shortly.