For those online vendors that want to reach out to more potential customers, particularly younger customers with no credit card, but a cell phone, Paymo may be the solution. Paymo has teamed up with a number of cell phone carriers and online vendors to allow a customer to pay for something by punching in their mobile # instead of a credit card.
Customers don’t even need a bank account. Paymo charges vendors between 3 and 5% for each transaction, so essentially, they would be swapping a credit card company for Paymo. Of course, Paymo isn’t the only player in the mobile payment business, so it’ll be interesting to see who wins out or if it just ends up being a divided market.