We've suggested before that online banking is still far from fully formed, which represents a challenge for all entities betting that mobile banking represents the next big payments paradigm.

For a closer look at this, consider the mobile payments market. PayPal transformed the online payment industry, but the fast-changing payments market didn't really give the company a chance to grow slowly into an industry greybeard. Mobile payments already looms as a big hurdle for the company. It has signaled its intent to become a powerhouse in this emerging era, and it underscored the point by announcing a deal to buy Zong, which allows for mobile payments by charging customers via their phone bills.

"In the long term, the combination could enable shoppers to use their phone numbers as they use their credit card numbers today," notes Mobile Banker.

Zong has stitched together a network of 250 mobile telecommunications carriers that reaches 3.2 billion consumers, or 80 percent of the mobile phone market, according to PayPal. Zong works with the top carriers in the U.S., including AT&T, T-Mobile USA, and Verizon Wireless. The field remains a bit crowded. Competitors include Boku and Danal's BilltoMobile. Recall also that Visa bought PlaySpan, a digital payments processor, for $190 million in February.

For more:
- here's the Mobile Banker article

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