Google and Telcos make a move in the mobile payment space

From Finextra:

Google patents SMS payments system

The publication of a patent filing has fuelled specualtion that Internet search engine Google is gearing up to launch a payments service, dubbed GPay, that would enable users to pay for purchases using SMS text messages.

Google filed for a "text message payment" patent in February 2006, but details of the filing have only just been published.

The GPay patent filing details how a sms text message from a mobile phone could trigger a "computer-implemented method of effectuating an electronic online payment". A user would send a text message to Google that gives details of a payment to a specified payee. GPay would debit the user's bank account and credit the payee.

The release of the patent filling follows fevered speculation on Internet blogs last week that Google was developing a new Internet-enabled mobile phone, dubbed GPhone. It is thought that the new Google Phone will be rolled out with the GPay payment service pre-installed.

Google already operates an online payments processing system, called Google Checkout, which competes with eBay's PayPal service.

UK telcos launch mobile payments system

The UK's major mobile phone operators - Orange, Vodafone, T-Mobile, 3 and O2 - have launched a payment system that allows subscribers to use their handsets to pay for low value purchases.

Users of the new PayForIt system can make one-off payments or set up subscriptions with a value of up to £10 for goods and services such as ringtones, train tickets and parking fees using Web-enabled handsets.

Money spent via PayForIt is automatically added to the customer's mobile phone bill, so users don't need a credit card or bank account.

Customers signed up to the service will be presented with a standard Payforit screen every time they make a transaction, which includes information on the content/service being purchased, the merchant it is being bought from and how much it will cost. Users then authorise payment by pressing 'pay now' or 'subscribe'. A payment request then goes directly to the mobile operator for validation.