Monday, September 24, 2012

Facebook Inc (NASDAQ:FB) ties up with Bango for mobile billing service

It has been confirmed that it is Bango which is powering Facebook Inc(NASDAQ:FB)’s mobile billing payments service, according to Tech Crunch.

Facebook has started getting more aggressive monetising its mobiles business and recently it started accepting mobile payments for its mobile web service via carrier billing in the US, the UK and Germany.

The world's No. 1 social network had introduced the mobile payments service - whereby users could bill payments for virtual games and game credits to their mobile phone operators - in June 2012.

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Under the new system users need not use premium SMS or credit cards but can bill it to their network carriers using Bango, via a single click.

Facebook is not the only platform where Bango's mobile payment services are available. Similar services are available on BlackBerry’s App World, Opera’s Mobile Store and Google Play, TechCrunch said.

It is also working with Amazon on a similar service. Bango’s payment service is available only in the U.S., U.K., and Germany at the moment. The company promises to make it available elsewhere in the coming months.

In a regulatory filing Bango said that it was the carrier billing service that was providing the mobile billing services.

It also claimed that its one-click system resulted in higher conversion rates of up to 77 percent among users.
The partnership between Bango and Facebook underlines mobile's importance to the social network. Soon after Facebook went public in May, the company was criticized for having few options to monetize its mobile growth. As of the summer, Facebook had nearly 550 million mobile users, monetized mainly through advertising.

On the other hand, shares of FB tumbled 9.30% to $20.74 after Baron’s released a price target of $15 on the stock over the weekend. The article stated that Facebook and its CEO Mark Zuckerberg were not ready for the rapid shift to mobile and it will not be an easy task for the company to play catch-up.

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