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Verizon Wireless ready for mobile payment service launch

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Verizon Wireless accounts will allow users to charge $25 per month over new e-payment system in online purchases. The carrier today announced that the e-commerce payment service, based on services created by Danal Inc. will be launched later this spring. The service will require text messaging-enabled phones, and that purchases be made from Verizon-approved online stores, which include game sites and social networks.

Users will need to click a BilltoMobile button during the checkout process in participating online websites. Users will be asked to input their mobile numbers and mobile billing zip codes for authentication. Once the user is authenticated, a one-time passcode will sent to their phone. The number is then input into the online checkout window. At that point, the transaction is complete and the charge will appear on the customer’s monthly phone bill.

Verizon highlighted the fact that the system means customers don’t have to rely on credit cards. Danal, based in Seoul (Korea) is setting up arrangements with online merchants in the US. Analysts have long wondered how mobile billing will work with U.S. carriers, which can create various conditions, including limits to sites that would be eligible for such a program.

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