Verizon Wireless Plans Mobile Payment Service
Verizon is rolling out a new mobile payment service. In its recent move the company has joined up with Silicon based mobile payments company known as Danal.
The service provided by the duo is claimed to be easy to use and will be available for free to all Verizon customers from later this quarter. Though it has started out pretty small with a $25 a month limit, but it is expected that this limit will increase as time goes by. As per this service an individual can pay for digital goods over his phone.
While browsing the web if an individual comes across some content which he wants to buy for example music or video. Then a BilltoMobile button will appear at the checkout, if the content provider is a partner merchant of Danal. The user can click on that button and provide his mobile number. The user will receive an SMS within 15 minutes and it will contain a one-use passcode. The user can just enter that passcode onto the content checkout window and the purchase is done.
One of the big things about a service like this is that it completely bypasses credit cards. The cost of purchases is straight away added to your mobile bill at the end of the month. For small digital goods purchases, a transaction charge can increase the overall price of a purchase by 25 to 50%.
Mobile payment company Danal gets $9.5M
Danal Inc. said Thursday it received $9.5 million in new venture financing.
San Jose-based Danal is the U.S. subsidiary of South Korea’s Danal Co. Ltd., a mobile payment service company.
The round was led by Morgenthaler Ventures, which has an office in Menlo Park. The South Korean parent company also contributed to the funding.
Danal’s service, which allows consumers to purchase goods and services online by charging their regular mobile phone bills, has wide adoption in Asia. In 2006, South Koreans alone charged more than $1 billion worth of transactions — representing 70 percent of all digital content purchased online — to their mobile phone bills.
Danal said it will use the financing to add to its team, commercialize its mobile payment service in the U.S. and strengthen its relationships with mobile carriers and merchants.
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