EBay’s online payment service PayPal is gearing up to offer mobile phone payments via text messaging. Recently surpassing 100 million users, PayPal’s impending service was apparently outed by the blogosphere when bloggers noticed some telling test pages.
PayPal plans to make an official announcement about the service, called PayPal Mobile, in the coming weeks. Spokeswoman Sara Bettencourt confirmed the news to Reuters after bloggers blew their cover.
To be launched in the United States, Canada, and Britain, PayPal Mobile will offer a couple of choices for making payments. Consumers can either send a text message to 729725 (PayPal on the number pad) with the dollar amount and the recipient’s phone number and wait for a return call for confirmation.
The second option is to call the company directly at 1-800-4PAYPAL, enter a PIN number, the amount, and recipient phone number. With either option, goods are shipped directly to the purchaser’s address.
Bettencourt told Reuters:
“It’s just like in the online world when you send a payment. All you are doing is sending a payment using your phone instead of your computer.”
The company plans to market the service with a “Text to Buy” campaign, encouraging users to buy things like CDs and DVDs. Advertisements will include an item code that can be sent via text for purchasing. PayPal says there will be no charge for sending money over the phone.
Payment services are making a mad dash for the mobile market, even if the U.S. is a bit behind other countries in utilizing the technology. Visa International has been working with Nokia and other manufacturers for the past five years to perfect a mobile payment option. Vodafone launched its payment service in the UK, Germany, and Italy in 2003.
Just last December, Cingular teamed up with Nokia, Atlanta Spirit, Chase, Philips, Visa USA, and VIVOtech to test out a pilot service in Atlanta’s Philips arena.
Finland is well ahead of the mobile payments world, already having in place a system where Finns can buy from vending machines, pay for car washes, or buy CDs.
The shift to mobile payments over cash transactions is already being dubbed “the electronic wallet,” as many in the industry expect that carrying cash will one day be a thing of the past.
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