PayPal to Offer Text Message Payments

By Mike Bevel, CollectionIndustry.com

Ordering pizza, weekend calls to mom, and now online payments?

PayPal spokeswoman Sara Bettencourt told Reuters news service yesterday that the world’s largest online payment service, “is going to be launching a mobile payments product.”

Customers will soon be able to make purchases and online payments using text messages from mobile phones. The service, to be known as PayPal Mobile, will be launched in the U.S., Canada, and Britain in the next few weeks. Soon, everything from utility bills to anniversary gifts could be ordered via text message from most cell phones.

The geographic focus is relatively narrow; however, PayPal has tentative plans to eventually extend the service to more than 55 countries. While desktop and laptop technology has been slow to spread in developing countries, mobile phones have become the primary way for many to connect to the Internet.

Mobile phone systems in Britain, Europe, and most of Asia and Australia have their own versions of mobile phone payment services. But PayPal’s strong verification system and security protocols give it something of a leg up on these overseas competitors.

PayPal Mobile will offer consumers the option to make purchases and payments either through traditional text messaging, or by dialing an 800-number.