| Premium SMS and Mobile Billing are growing as a | | | | SMS on their phone, and the product price shows up |
| means to purchase both online and offline. While it is | | | | on their next phone bill. |
| still in its infancy, mobile billing solutions are quickly | | | | It provides instant access to direct bill anybody with |
| gaining ground world wide, and is an excellent add-on | | | | a cell phone. New research has shown that mobile |
| to current payment types. Many Gen X and Y-ers | | | | billing is several times more effective with |
| are getting used to this new way of paying for items | | | | internet-based merchants where the use of credit |
| and the growth and market acceptance are not | | | | cards is necessary. The addition of this payment |
| slowing down anytime soon. | | | | solution just adds to the appeal to buyers. |
| So, what is it? | | | | As an online company, we have recently |
| Mobile Billing solutions have opened up endless | | | | implemented this new mobile billing solution to |
| possibilities for content providers, brands, and | | | | complement our credit card, debit card, and e-check |
| marketers looking to generate revenue from | | | | transactions. You won't believe the appeal it has with |
| anybody with a cell phone. Mobile subscribers can be | | | | the younger demographic. Are there any downsides? |
| billed for third party content and services directly on | | | | Not to the customer, but to the company, you have |
| their cell phone bill by their wireless carrier, and the | | | | to share quite a bit of the revenue with the billing |
| revenues are roughly split between the content | | | | provider and mobile phone company. Sometimes as |
| provider and carrier. In simple terms, here is a general | | | | high as 50-60% of your revenue is gone. Much higher |
| example: a customer wants to purchase an item. | | | | than the few percentage points a credit card solution |
| They simply send a text message (or SMS) to a | | | | takes. |
| special number code (most of the times a five digit | | | | Overall, it is an excellent add-on to your existing |
| code) with a keyword (usually an easy to remember | | | | payment solutions. It is a quick and easy way to pay, |
| descriptor of the item). They receive a confirmation | | | | and very secure and private. |