Examining the M-Commerce Landscape After eBay’s Zong Acquisition


ADOTAS – Last holiday season, eBay witnessed a 134% year-over-year growth in U.S. m-commerce sales between Nov. 25 to Dec. 25, resulting in $100 million in gross merchandise value (GMV).

As smartphone proliferation ramps up, eBay is expecting even more m-commerce business — hence why yesterday its PayPal unit acquired Zong, which is not the villain of a forgotten Bruce Lee movie but a mobile payment system that allows purchasers to send payments right to their mobile phone bills. At $240 million, the price tag was only a fraction of the $2.4 billion eBay paid for e-commerce platform GSI Commerce at the end of March.

Zong’s ability to put the check on your phone bill allows eBay to forgo cutting deals with all the wireless carriers and gives it a an early lead in the burgeoning mobile payments space. Just last month Google introduced its NFC-powered digital Wallet, developed alongside Citi, Mastercard and Sprint. There’s also Isis, a joint venture between AT&T, T-Mobile and Verizon Wireless that was scaled back from a full mobile payment system to a digital wallet (though Google is reportedly wooing AT&T and T-Mobile to join the dark side Wallet team).
So there are a few different approaches to enabling consumers to pay with their phones — fortunately G+ (which may want to consider a name change with the launch 0f the Google+ social network) has packaged all you need to know about m-commerce into this handy infographic.


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