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Telcos to let customers 'Payforit' via cell phone

Telcos to let customers 'Payforit' via cell phone
Telecom, Vodafone and 2degrees have reached an agreement to let customers to purchase apps and digital content on their cell phone and have it charged to their phone bill.

Telecom, Vodafone and 2degrees have reached an agreement to let customers to purchase apps and digital content on their cell phone and have it charged to their phone bill.

The telcos are members of the Telecommunications Carriers’ Forum (TCF) Working Party, which has developed the Payforit Trusted Mobile Payments Framework to enable users to to make low-cost purchases using their mobile phones.

“We anticipate that this will encourage consumer confidence in paying by mobile for content and services, and in turn generate repeat business and growth in conversion rates for content providers," said TCF chief executive David Stone.

Customers using Payforit don't need a credit card or bank account to use the service, nor do they need to sign up or register any details.  The whole process can be completed on a cell phone and purchases are charged back to their mobile account.

The framework is based on the British Payforit service which was introduced in 2006. It allows customers to purchase content and have the charge added to their phone bill or, in the case of prepay customers, taken off their account balance. The payment process is managed by Accredited Payment Intermediaries (APIs).

According to TCF, Payforit has been designed to support ‘micropayments’ of "typically less than $10". It is also available as a payment option on regular websites.