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Summary:

Here’s a company you should be paying attention to, if you’re not already: Zong, the mobile payments startup, said today it’s raised $15 million in a round led by Matrix Partners and is now fully spun off from Switzerland-based Echovox.

Here’s a company you should be paying attention to, if you’re not already: Zong, the mobile payments startup, said today it’s raised $15 million in a round led by Matrix Partners and is now fully spun off from Switzerland-based Echovox. Palo Alto, Calif.-based Zong enables mobile payments through both cell phone bills (it has hundreds of direct relationships with carriers) and direct charges to credit or debit cards (to avoid carrier feeds).


Most notably, Zong is Facebook’s mobile payment provider of choice, an enviable position given the popularity of virtual goods on that massive platform. Along with the funding, Matrix General Partner Dana Stalder, a former PayPal exec who led PayPal Mobile as well as the company’s developer platform, will join Zong’s board.

Competitor Boku raised $25 million in Series C funding from DAG Ventures, Benchmark Capital, Index Ventures and Khosla Ventures in January. And of course, there’s a certain eBay-owned company that scoffs at the notion of “PayPal killers.”

Related research from GigaOM Pro (sub req’d):

Report: Monetizing Digital Content

  1. Its a shame that this company is pigeonholed into virtual goods for now. Some of us would love to use mobile payment solutions for their products, and cannot because of the extreme cut that mobile carriers still take from all transactions.

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    1. I’d imagine they will expand. And we’ll see if carriers can hold onto their tithings.

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  2. [...] the “underbanked.” Whether it’s payment dongle Square launching this week, Zong raising $15 million late last month on the strength of its virtual goods business on Facebook, or the fact that my [...]

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  3. [...] the mobile payment startup from Twitter co-founder Jack Dorsey — or Zong, which recently raised $15 million? Thompson said that Square is “a neat little piece of technology that I’m not sure is [...]

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  4. [...] joining the board of the company along side Blackberry’s Kevin Talbot. Payfone is competing with other liberally funded startups such as Zong and Boku which has attracted multiple-millions of dollars from top venture [...]

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