eBay buys mobile payments company Zong for $240m | Mobile Payments | Mobile Entertainment

eBay buys mobile payments company Zong for $240m

eBay buys mobile payments company Zong for $240m
Stuart Dredge

by

Payments / July 7th 2011 at 3:36PM

Says acquisition will offer PayPal users more mobile ways to pay.

eBay has announced that it will acquire mobile payments startup Zong for $240 million in cash.

The company says it sees Zong as complementary to its PayPal subsidiary, which has also been making a big push into mobile payments in the last couple of years.

"Commerce is changing. With mobile phones, we walk around with a mall in our pockets. PayPal helps to make money work better for customers in this new commerce reality – no matter how they want to pay or what device they’re using," says PayPal president Scott Thompson.

"We believe that Zong will strengthen this value by helping us reach the more than 4 billion people who have mobile phones, giving them more choice and security when they pay."

PayPal currently has more than eight million mobile users, and expects to generate more than $3 billion in transactions in 2011. Meanwhile, Zong has connections into more than 250 mobile operators around the world. It's a potentially powerful combination, and one that could see other major players in the payments space making their own acquisitions to compete.

Interested in the mobile payments space? Download ME's own premium report, Mobile Payments 2011, for an unmissable overview of developments in operator billing, pay-by-mobile, in-app payments, NFC, PayPal on mobile and much more.