Verizon Wireless set to launch mobile payment service

E-commerce payment system lets users charge $25 a month to Verizon Wireless accounts

Verizon Wireless customers will soon be able to charge up to $25 a month in online purchases to their Verizon Wireless accounts.

The carrier today announced that the e-commerce payment service, based on services created by Danal Inc. will be launched later this spring.

The service will require text messaging-enabled phones, and that purchases be made from Verizon-approved online stores, which include game sites and social networks.

The service requires that customers click a BilltoMobile button during checkout from a participating online Web site. Users will be asked to input their mobile numbers and mobile billing zip codes for authentication.

Once the user is authenticated, a one-time passcode will sent to the his or her phone. The number is then input into the online checkout window. At that point, the transaction is complete and the charge will appear on the customer's monthly phone bill.

The benefit of the system means customers don't have to rely on credit cards, Verizon officials noted.

Seoul-based Danal is setting up arrangements with online merchants in the U.S.

Analysts have long wondered how mobile billing will work with U.S. carriers, which can create various conditions, including limits to sites that would be eligible for such a program.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen, or subscribe to Matt's RSS feed . His e-mail address is mhamblen@computerworld.com.

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