Bill Payment: PayPal Buys Zong
- PayPal, the leader of online payments and eBay’s subsidiary,, has just purchased Zong: a start-up specialising in m-payment using mobile operators’ bills. This acquisition cost 240 million dollars.
- Zong results from Echovox and was founded in 2008; it is implanted in 45 countries and has established links with 250 mobile operators.
- This solution is mostly dedicated to micro-payments and allows the users to purchase digital contents.
- This acquisition will enable PayPal to complete its payment service offer and take one more step towards mobile payment.
- Through this purchase, PayPal benefits from an already established network of mobile operators and from their subscribers’ database. eBay’s subsidiary also envisages to target about 4 billion mobile phone owners.
- This move confirms PayPal’s will to widen its range of payment media and technologies.
- It should also be reminded that Zong recently raised 30 million dollars with Matrix Partners, Advent Venture Partners and Newbury Ventures. Finally, Zong will provide PayPal with a connection to Facebook, as payment acceptor, thus enabling the social network’s users to purchase Facebook credits with their mobile phones.