EBay announced on Thursday that it will acquire mobile payments provider Zong for $240 million in cash in an attempt to shore up its ability to process payments for digital goods.
Menlo Park, Calif.-based Zong, which specializes in processing payments through mobile carrier billing, counts more than 250 mobile network operators around the world — 21 languages, 45 countries — as partners.
Its service specifically allows consumers to pay for purchases via a mobile phone or computer through direct carrier billing: enter a mobile phone number, send a payment, with verification and account synchronization en route.
EBay of course owns PayPal, already a top global payment platform in its own right with a portfolio of more than 100 million accounts.
Combining the two reinforces the company’s lead in the sector as others — including Visa and Mastercard — vie for parts of the rapidly growing business.
The ultimate goal: make sure there’s a solution anywhere a customer feels the impulse to pay for something.
As smartphones and other digital technologies open up these opportunities — there are more than 4 billion mobile phone owners worldwide — it’s an industry race to plug the gaps.
