Cities in the United States can improve their parking environments via the use of mobile payments systems.

For example, Verrus Mobile Technologies has launched its Pay by Phone parking service in Anchorage, AK, and Wilmington, NC. Anchorage, Alaska's largest city, has introduced the new mobile payment system for resident drivers and it is already proving to be a success.

"The Verrus payment service for parking solves problems for drivers," said David Spittel, executive vice president and cofounder of Verrus Mobile Technologies, Vancouver, BC, Canada. "If you drive, you're probably aware of the challenges that most drivers face when parking -- lack of change, parking tickets, running back to the meter, etcetera.

"Our solution eliminates these common issues by letting customers use their mobile phone to pay rather than the meter."

Founded in 2000, Verrus is a Canadian mobile payments company.

The Pay by Phone service is available in 100 cities in North America and Europe, including Miami, Vancouver, London, Seattle, New Orleans and Birmingham, AL.

The Anchorage Community Development Authority had been in the process of improving the city's parking environment when they chose to adopt the system.

One of the primary motivations behind Anchorage's adoption of the system, which allows drivers to pay their parking fee from inside their vehicles using their handset, is the extreme cold weather experienced by the city year round.

"Payment by mobile phone makes a great deal of sense in environments that have the right characteristics," Mr. Spittel said. "Parking has what we believe to be ideal characteristics -- consumer pain, high number of cash transactions, parking operator challenges " and therefore makes a compelling mobile payment opportunity.

"We strongly believe that ownership of key beachhead mobile payment opportunities like parking is a strategy that will establish the future leaders in the broader mobile payment space."

The Verrus Pay by Phone service will integrate with new parking meters throughout Anchorage, supplied by Digital Payment Technologies, a Canadian company which specializes in parking management services and resources.

In Wilmington, NC, Lanier Parking, another parking management company, has teamed up with Verrus to provide Pay by Phone parking services in the Port City.

City officials in Wilmington have also reported success with the new technology.

Up until last month, Wilmington drivers had to use coins to pay for their downtown on-street parking.

Features of the Pay by Phone service include online receipts, text message reminders and extending parking time by phone.

Payments are billed to a credit card on file that is registered when the customer signs up.

"We think that true mobile payment -- payment for real-world goods and services -- is still in an early stage," Mr. Spittel said. "Wireless carrier billing is a desirable feature, however carriers currently charge our customers disproportionately high fees for accepting payment compared to credit cards.

"However, we do see certain opportunities emerging that are proving to be of real value drivers for both consumers and businesses."