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eBay Inc., the world’s largest online marketplace, has agreed to buy closely held mobile-payment provider Zong Inc. for $240 million in cash.
Zong provides a mobile payments platform that facilitates carrier-direct billing for digital goods and services. Users pay for their purchases by entering their mobile phone number and payment is billed to the customer’s wireless service account.
The company helped develop Facebook Credits and has partnered with many of the social gaming and virtual worlds’ biggest companies, including Zynga, IMVU, Walt Disney’s Playdom, and IAC’s Zwinky.
eBay is pushing deeper into smartphone services as its PayPal unit faces growing competition from Square Inc. and Google Inc., which offer products making it easier for customers to make purchases with mobile devices. Last year, EBay acquired Red Laser and Milo, mobile comparison shopping applications that let users scan product barcodes and read reviews.
Currently, more than 8 million customers are making purchases on their mobile phones through PayPal, driving up to $10 million in mobile payments per day, eBay said. PayPal expects to transact more than $3 billion in mobile payments in 2011, it said.
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