Mobile Payments Startups Zong And Boku Launch Billing Partnerships With Verizon

After announcing direct relationships with AT&T, Zong, Boku are announcing direct relationships with Verizon through mobile payments operator BillToMobile.

So why is this important? Historically, mobile payments companies face the challenge of lofty carrier rates. Wireless carriers have charged roughly 30% to 40% to process transactions made via mobile phone accounts, making it very difficult for mobile payment companies like Boku to scale beyond virtual goods. These transactions costs are passed down to developers using Boku and Zong, which are then passed to the consumer. To avoid these costs, Boku and Zong have been negotiating direct relationships with carriers as a way of possibly avoiding these costs.

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