Summary:

A new mobile payment system has been launched…TextPayMe allows people to send money with an SMS. It works like this: Someone signs up to t…

A new mobile payment system has been launched…TextPayMe allows people to send money with an SMS. It works like this: Someone signs up to the service, they then SMS “PAY (amount) (phone number)” to SMS@TextPayMe.com. They receive a phone call which will require them to enter a PIN (for security) and the money gets sent from a credit card or an account that has been preloaded. The receiver (who doesn’t have to be signed up) can get the money deposited into a bank account or have a check mailed. The initial deposits, withdrawals and transactions are all free — which leads me to assume a fee based structure is part of the business plan, but I haven’t seen it. At the moment I’m not sure how useful this is, since it seems to be an alternative to PayPal. True, you don’t need to be at your computer to make a payment, but most purchases that require that kind of payment are on the web. However, if the system can be linked to mobile content it may find a ready market — especially if it works out cheaper than the cut operators take for supplying a payment system… (via Textually)

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