Danal Receives $9.5 Million in Venture Financing

Danal Inc., the U.S. subsidiary of the South Korea-based mobile payment service company Danal Co., has received $9.5 million in venture financing, primarily through Morgenthaler Ventures.

Danal pioneered the use of mobile phones plans to charge for goods and services online, starting in South Korea in 2000. The service is now used throughout Asia. In 2006 South Koreans charged more than $1 billion worth of transactions. Danal will use the $9.5 million to commercialize its mobile payment services in the U.S.

“Danal has a significant lead and is in the best position to dominate the U.S. market,” said Ken Gullicksen, a partner at Morgenthaler Ventures, in a statement. “Danal created this category. It is the market leader in South Korea, Taiwan and China. And, it is the only mobile payment provider to have commercialized this service on a large enough scale to guarantee a high quality of service and security to customers.”

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