A new entrant in the mobile payments derby

When will mobile payments really take off in the U.S.? That's unclear but it won't be for lack of effort on the part of a group of start ups with names like PayMo, Zong and MobillCash. So far no one--no banks, telecom firm or retailer--has come up with a winning model for the U.S. market. PayMo thinks it has hit a winning formula with its services, notes CNNMoney. It has set up a text-message system that allows people to make payments on their phones. The amount is deducted from a prepaid account or is added to a phone bill.

The market most likely will be people without credit cards or perhaps people who want to buy online without using a credit card. PayMo has forged deals with AT&T, T-Mobile, Cellular One and Virgin Mobile. This will not be the last word. What will be key is a business and revenue model that carriers can live with. You have to wonder if banks and card companies will somehow enter the derby.  

For more:
- here's the article
- here's some background from the New York Times

Related Articles:
TowerGroup Analyst Report "US Mobile Banking Forecast: 2007-2012"
Bank of America reaches One Million Active Mobile Banking Customers
Big PE firms aim for Chinese mobile company