Zong is a leading mobile payment service used by social networking and online gaming websites. The company was acquired by eBay for $240 Million in July 2011. Zong says that its platform converts shoppers into buyers – 10 times better than traditional payment methods.
Zong was founded in 2008 by entrepreneur David Marcus and is headquartered at Menlo Park, USA. The management team includes Ossama Hassanein (Chairman), Sylvian Boj (COO), Kurt Hemecker (VP Carrier Partnerships) and Bertrand Perez (VP Operations). Zong has received a total funding of $27.5 Mn through investors Newbury Ventures, Advent Venture Partners and Matrix Partners. Zong operates in over 45 countries worldwide.
How does it work?
- Zong lets you pay for things, particularly virtual goods online, via direct billing to your mobile phone.
- Consumers simply enter their mobile phone numbers in the payments process.
- When a user wants to purchase an item, he can enter his cell phone number on a site, the site sends a text message to the phone, the user confirms the transaction with a short reply, and all the charges show up on his phone bill.
- Zong powers this entire transaction. The company has partnered with over 250 carriers worldwide to offer the technology to mobile phone users.
This video shows you how to pay for stuff on the popular social networking site IMVU:
Zong landed a big deal in 2010 by collaborating with Facebook to become an early provider of Facebook credits. IMVE, Zynga, Sulake, Big Fish Games, Sony Online Entertainment, Playdom (owned by Disney) and Bigpoint are some of its other partners. Zong has pretty massive international reach, offering mobile payments in in 21 languages and 45 countries. The company is now helping PayPal expand its footprint in developing countries.