Verizon enters the Mobile Payments Space

Verizon has just announced that it will enter the mobile payments space by offering its consumers the ability to pay for online goods and content by effectively 'billing' the items to their mobile phone account. All items purchased in this manner will appear on their post-paid phone bill, which they will pay as per current processes. Verizon is offering the service through Danal Inc's BilltoMobile payment service, providing Verizon's customers with immediate access to content and goods sold through Danal's network of eCommerce merchant partners.

With Verizon entering this space, providing this form of payments to their large customer base, this form of mobile payments will truly be put to the test. Success will certainly lead to the following:

a) Other MNO's will see the revenue opportunity and will look at providing the same or similar service to their customers

b) Expansion of this service to the pre-paid subscriber base

c) An increased monthly spending limit (currently, it is limited to $25 / month)

Either way, it will be interesting to see how this plays out since this will give us all a good gauge on America's appetite for this form of mobile payment.

Posted on: Wednesday, March 24, 2010