eBay Purchases Zong for $240 Million
eBay announced that it has agreed to buy Zong for $240 million. Zong is a mobile payment provider that eBay can use to increase its PayPal service reach. Zong provides a mobile payment platform that allows digital goods and services to be charged directly to the carrier.
Users can pay for their purchases by inputting their mobile phone number and the payment will be billed to the user’s wireless service account. It provides convenience to people who want to make in-app purchases.
The California-based company helped develop Facebook Credits system. It has partnered with various social gaming and virtual world companies, such as Zynga, Walt Disney’s Playdom, IMVU, and IAC’s Zwinky.
The company boasts of having access to 3.2 billion mobile users covered by 250 carriers around the world. David Marcus, CEO of Zong, said that his company’s customers love the convenience of paying through their mobile phone account. It is one thing that they carry with them always. Zong is looking forward to extend its services to the more than 9 million merchants using PayPal.
Zong was founded in 2008 and backed by Matrix Partners, Advent Venture Partners and Newbury Ventures. The acquisition is expected to be finalized in the third quarter of this year.