Zong CEO David Marcus Talks about eBay Acquisition
Zong CEO David Marcus is optimistic about the news that eBay agreed to acquire his company for $240 million in cash. eBay said that Zong will help increase PayPal’s dominance in mobile payments industry. Marcus founded Zong in 2008 and is known as the pioneer in mobile payments by using direct billing to mobile phone carriers.
Zong allow users to pay for virtual goods and other online purchases via their mobile phone number. Using Zong service is easy. The user just needs to click on the red Zong button and wait for the passcode to be sent to the phone via text message. Then the user needs to enter the passcode to complete the transaction. The purchase will be billed to the carrier and will be reflected on the next phone bill.
The company has partnership deals with around 250 million mobile network operators across the globe. These connections were inherited from its parent company Echovox, which was also founded by David Marcus in 2000. Zong has access to 3.2 billion mobile phone users worldwide. Zong is backed by Newbury Ventures, Matrix Partners and Advent Venture.
PayPal plans to use Zong’s technology to offer consumers more payment options. Mobile phones are always within reach. It believes that Zong will strengthen its hold in online payments and help the company reach out to more than 4 billion people.