PayPal plans text messaging payment service
INTERNET BUSINESS NEWS-(C)1995-2006 M2 COMMUNICATIONS LTD
Plans to introduce a service to enable consumers to make money transfers or purchases using text messaging through a mobile phone, have been revealed by PayPal, an online payment company and unit of eBay Inc.
PayPal is intending to introduce the service, which is called PayPal Mobile and will act as an ‘electronic wallet’, in Canada, the US and the UK within the coming weeks, with other markets around the world to follow.
The service is intended to make online payments more convenient for existing PayPal users and enable markets in the developing world to be reached, where mobile phones are used more than computers to connect to the Internet.
PayPal Mobile will enable customers to transfer funds for purchases or gifts to individuals or retailers, via text message or by calling an automated customer service system and transmitting funds using voice commands. A ‘Text to Buy’ feature would enable consumers such as magazine readers to purchase items – such as CDs, concert tickets or clothes – by sending product codes featured in adverts via mobile phone.
Once the service is running, mobile phone users will be able to send a text message to 729725, which represents the spelling of PayPal on a numeric keypad, with the recipient’s phone number and amount of money to be transferred. The user will receive a call back and enter a secret PIN to confirm the transaction, with PayPal contacting the recipient to explain how to claim the online payment.
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