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AT&T, Alltel to allow third-party billing on phone bill

Payment processor Global Electronic Technology Inc. is letting mobile phone subscribers of AT&T and Alltel pay for online goods and services via their handset.

GET has partnered with Mobillcash to power the mobile payments. Beginning this month, GET's merchants can accept mobile payments from wireless subscribers without filling out forms, membership registrations, requiring personal or financial IDs or having to provide consumers' credit card or bank information.

"This mobile payments system is more secure than paying with a credit card or drawing funds from your bank account, since Mobillcash and the merchant don't know the identity of the consumer," said Philip Tarazi, vice president of marketing for Mobillcash, Santa Rosa, CA.

Mobillcash said it will have full coverage in the United States, in terms of participating carriers, before the end of the year.

Users visitng a Mobillcash-enabled Web site are asked to enter their location and mobile phone number. A few moments later they receive a text message requesting confirmation of the payment by replying Y for yes.

The transaction goes through immediately and customers are billed by their carrier. Or, in the case of prepaid phones, credit is deducted.

Paying via mobile phones is common for sites with gaming or downloadable goods and services.

Mobillcash is a payment option available to more than 80 percent of all pay applications on Facebook, including Texas HoldEm Poker, Black Jack, Armies, Mob Wars and FluffFriends.

"This is the first mobile billing system in the world that does what we're doing," Mr. Tarazi said "We created mcommerce and made it very similar to ecommerce.

"We'd like to be on every payment page in the world, so to get to all the merchants, we've joined forces with payment processors like GET, which already has the relationships with tens of thousands of Web sites," he said.

GET is a boutique merchant account payment processor that provides electronic payment services to businesses and financial institutions. It specializes in the development and delivery of financial solutions for its clients including credit cards, debit cards, ACH, online check processing systems and next-generation payment engines.

Internationally, Mobillcash has partnered with Swedish online gaming payment system Paynova, which will integrate mobile payments as an option on its 10,000-plus sites.

Market research company Jupiter Research predicts that 612 million mobile phone users will generate more than $587 billion worth of financial transactions in 2011. With 700 million online users and more than 3.3 billion mobile phone users, most Internet users have a mobile phone.

"Payments processors such as GET are already working with the merchants for online ecommerce, so mcommerce is a natural fit," Mr. Tarazi said. "We're working within the existing distribution channels in the credit card and ecommerce payments industry and integrating ourselves with them, so it's a great fit for everybody.

"We're partnering with those companies to make it easier on the merchants, giving them the option to add mobile payments," he said.