Verizon Wireless to launch mobile payment service

E-commerce payment system lets mobile phone users charge $25 a month to their Verizon Wireless accounts

Verizon Wireless customers will soon be able to charge up to $25 a month in online purchases to their Verizon Wireless accounts.

The carrier today announced that the e-commerce payment service, based on services created by Danal will be launched later this spring.

[ Stay up on tech news and reviews from your smartphone at | Get the best iPhone apps for pros with our business iPhone apps finder. | See which smartphone is right for you in our mobile "deathmatch" calculator. ]

The service will require text messaging-enabled phones, and that purchases be made from Verizon-approved online stores, which include game sites and social networks.

Access InfoWorld from your iPhone or other mobile device at . Get the latest tech news on your iPhone with IDG's ITnews iPhone app .

The service requires that customers click a BilltoMobile button during checkout from a participating online Web site. Users will be asked to input their mobile numbers and mobile billing zip codes for authentication.

Once the user is authenticated, a one-time passcode will sent to the his or her phone. The number is then input into the online checkout window. At that point, the transaction is complete and the charge will appear on the customer's monthly phone bill.

The benefit of the system means customers don't have to rely on credit cards, Verizon officials noted.

Seoul-based Danal is setting up arrangements with online merchants in the U.S.

Analysts have long wondered how mobile billing will work with U.S. carriers, which can create various conditions, including limits to sites that would be eligible for such a program.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld . Follow Matt on Twitter at @matthamblen , or subscribe to Matt's RSS feed . His e-mail address is .

Read more about mobile and wireless in Computerworld's Mobile and Wireless Knowledge Center.

This story, "Verizon Wireless to launch mobile payment service" was originally published by Computerworld.