PayPal Mobile(Mobile Payment System)

Cell phones have changed from being simple voice transmitters to productivity tools and entertainment. Now, as several new services illustrate, they are poised to replace international wire transfers and banks cards as well.

PayPal has launched its mobile payment platform, called PayPal Mobile. Oliver Starr at MobileCrunch had the scoop and was also slashdotted at March 22, 2006. PayPal’s solution is easy to use, and has some great features that take this beyond a way to text your friends money. To use the service, you need to register a phone and create a PIN. PayPal uses an automated system to call you on the phone and verify the PIN, and the phone is then usable.

To send a person to person payment, you either text the payment amount and recipient’s phone number to PayPal, or call a toll free number and follow the directions. PayPal Mobile can also be used to pay for stuff as well. It’s called Text to Buy:

Anytime you see Text to Buy next to something you want to buy—on a poster, in a magazine, at an event—you can securely order the item by text message.
Use your phone to buy items like CDs, DVDs, books, electronics, accessories and much more.

To use it, you text PayPal the item number, and they call you back to confirm the purchase. Done.

Most mobile carriers charge for text messages but there are no additional charges for using PayPal Mobile.