Verizon Wireless and Danal said today that Verizon Wireless plans to launch Danal’s BilltoMobile payment service later this spring, so Verizon Wireless customers will be able to charge online purchases of digital goods directly to their monthly phone bills.
The mobile payment service will feature a $25-per-month spending limit for such purchases, along with content and parental controls for individual accounts, giving account owners the ability to manage their BilltoMobile usage.
The deal isn’t a surprise to executives in the mobile payments space who have known for quite some time that Verizon and Danal were in a partnership. The two signed an agreement several months ago, but today is the first time they have publicly acknowledged it.
When available, customers with text messaging-enabled phones will be able to shop for Verizon Wireless-approved content at online stores, including game sites, social networks and virtual worlds.
To conduct a transaction, consumers click on the BilltoMobile button during checkout at a participating online Web site and then input their mobile numbers and mobile billing zip codes for subscriber authentication. A text message is then sent to consumers’ mobile phones with a one-time passcode.
Once consumers input the passcode into the online checkout window, the transaction is completed. The entire process takes about 15 seconds, and there is no pre-registration or links to credit cards or bank accounts required.
Danal, which has had a mostly quiet presence in the United States while it ramped up the Verizon service, is leveraging its experience in Korea, where up to 60 percent of all online digital content purchases are now billed directly to mobile accounts.
Danal plans a press event later today at the Las Vegas Convention Center. Speakers will include Seongchan Park, chairman and CEO of Danal in Korea; Brian Boyle, chairman of Danal U.S.; and Jim Greenwell, CEO of Danal.
