Paymo lets you buy social-network knickknacks on your phone

San Francisco-based Paymo just launched its mobile payment service, allowing users to buy virtual gifts on social networks via their cell phones. What’s more, these costs are folded into their phone bills. The service is now live in 40 countries.

When users make a purchase, Paymo sends them a confirmation text message. It focuses on micro-payments of $10 or less. The launch was funded by $5 million received in August from undisclosed angel investors. Paymo makes money by skimming 5 to 10 percent off each payment. The wireless provider supporting the transaction also gets a cut.

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