PaymentOne, a mobile payments startup, is rebranding itself today as PayOne, an enabler of a “frictionless mobile lifestyle” where you can use your mobile phone to pay for just about anything.
The 12-year-old company is focused on powering carrier-billed mobile payments beyond the typical borders of mobile content purchases. It is also relaunching its service as a one-click mobile payments platform that can be used to pay for everything for pay-per-view movies to purchasing a mobile app.
“Different from offline and e-commerce, every added data element or keystroke required of a mobile consumer on the small screen is a serious point of friction and a measurable point of failure or falloff for a merchant,” said Joe Lynam, chief executive of PayOne. “Requiring the consumer to enroll, pre-register, provide sensitive personal or credit card data or establish a separate user name and password to make a simple payment amounts to far too much friction for a mobile user. The new PayOne brand represents our mission to streamline and eliminate every single step, process and keystroke possible to optimize the mobile payment experience for the consumer and our partner merchants.”
For consumers, the company’s service is simple. It lets them pay for digital services by charging it to their monthly mobile phone bill. They make a purchase using PayOne’s “Pay by Mobile” button. Then they enter their mobile or fixed-line phone number, and then enter a pin code that they receive via text message to confirm the purchase.
But it’s a complex business. San Jose, Calif.-based PayOne has arrangements with 1,000 carriers in more than 80 countries, with services such as authentication and fraud management. It pays in seven days in contrast to traditional 60 to 90 day pay periods. Full told, it has billed more than $5 billion worth of transactions to mobile bills. It supports 23 languages. Rivals include BilltoMobile, Zong and Boku. By 2016, remote mobile payments will surpass $250 billion by 2016, according to Jupiter Research.
The company envisions paying for games, app downloads, streaming music, movie tickets, parking, merchandise advertised billboards, items with QR codes, bus tickets, or donations while on the run. One of the company’s new customers is Snap MyLife, which uses PayOne’s AnyPhone service to pay for digital goods and services, both offline and online. Princeton, N.J.-based Snap MyMobile currently has 500,000 subscribers for its service associated with photo sharing.
“There are a dizzying number of use cases where newly connected devices coupled with a simple transaction process will enhance and improve the way we live, work and play,” adds Lynam. “Even the simplest example of paying for parking with a single click from my mobile phone, receiving a text alert when I’m about to run out of time, and the ability to remotely pay for more time with just one click, represents a true convenience that is a reality today with PayOne.”
The company is profitable and privately held. PayOne has raised $13.5 million to date and it has 55 employees.
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