In EBay, the online auction giant, has agreed to buy mobile payments company Zong for $240 million in cash. According to sources, EBay plans to meld Zongs technology with that of PayPal, the online payment company that EBay already owns. The deal is expected to close by third quarter of this year.
Founded in 2008, Zong is affiliated with more than 250 mobile networks in 45 countries worldwide. The company allows users to pay for their digital goods purchases by using their cell phones. Their net expenses get added to their monthly wireless bill. Currently Zong is not available in India.
In order to use Zong, in countries where it is available, users need to enter their mobile phone number at checkout. They will receive a text message a few seconds later. Users can verify their expenses by replying to the text message or by supplying a four-digit PIN to be entered on the site of purchase.
The spokesperson of PayPal, Anuj Nayar, has confirmed that in the initial stages EBay plans to use Zong only for purchases of digital goods.
Add new comment