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Facebook partners with Bango for mobile payments through your carrier bill

Facebook has partnered with Bango to enable mobile payments for in-app content through a user's carrier bill. Real world goods payments coming soon.
September 24, 2012
Pretty soon, all our online and real-world purchases could be paid through our carrier bills. Bill shock, anyone? (Photo credit: Shutterstock)

Not all mobile manufacturers have embraced NFC technology for mobile payments. But even without NFC or any other wireless tap-to-pay method, alternative payment systems are becoming popular among mobile platforms and mobile users. Facebook, for one, has launched a service through which mobile users can pay for online goods using their mobile phone bill.

The service, powered by Bango, currently works for online goods bought through Facebook, such as online game credits and other content. With the new service, users can pay for online content without traditional payment methods like credit cards or through premium SMS messages. Users get to pay through their carrier bills.

This piece of news is particularly good for developers who build apps for mobile platforms (in particular through Facebook). Bango says it has a 77% conversion rate, compared to traditional cellular billing gateways at 40%. This means developers have a better potential from earning from their mobile apps’ in-app or in-game content through the system.

The service has launched in the U.S., UK and Germany, and the companies involved say they will be rolling out the payment functionality to more countries within the year.

For Facebook, it’s one way to remain relevant in the increasingly mobile world. But going beyond in-app content, Facebook and Bango do have plans to bring their mobile payment system to the real world, giving users the ability to pay for point-of-sale or online shopping purchases through their carrier bills.


Facebook Update

Bango plc (AIM:BGO), the mobile web payments and analytics company, today announces that its integration with Facebook is now live. Bango is providing Facebook mobile web carrier billing in Germany, the UK & USA, and the service is being expanded to other countries during the remainder of 2012.
Following an initial announcement of the partnership in February 2012, Bango now provides Facebook mobile web carrier billing, as part of an improved mobile payments flow. This enables Facebook’s mobile web users to easily purchase digital content without the use of premium SMS messages or the limitations of credit cards. Instead, users enjoy frictionless operator billing, paying on their phone, without the need to register personal details.

Bango is one of the world’s leading mobile payments and analytics companies. App stores, publishers and content providers use Bango to collect payment from mobile users for online content and services. Bango’s pervasive presence across app stores, publishers and mobile operators creates a platform effect for its partners, leading to more identified mobile users and maximizing the number of single-click payments. The result is significantly higher rates of collection. This is the experience that Facebook is now using for its smartphone payments service on the mobile web.

Bango has become the payments platform of choice for many of the world’s leading app stores. In addition to Facebook, Bango’s existing app store connections include Blackberry App World, Opera Mobile Store and operator-led connections to Google Play. Bango has also announced an agreement to provide payment services to Amazon and has become a technology partner for MasterCard’s PayPass mobile wallet.

Conventional operator billing is expected to achieve around a 40% conversion rate. Put simply, most mobile commerce customers who click ‘buy’ do not successfully buy. Billing with the Bango payment platform delivers an average conversion rate of 77%. Most users who click ‘buy’, do buy.

Commenting on the announcement, Bango CEO Ray Anderson said “We are delighted to bring Bango’s payment experience to Facebook. As the mobile web experience has matured and improved, consumers are increasingly keen to purchase digital goods on mobile devices. By ensuring a frictionless payment experience, Bango technology is unlocking the business potential of the mobile web.”