Ebay already owns online payment service PayPal. Combined with PayPals global payment platform serving 100 million active accounts worldwide, eBay expects that Zong will add complementary technology and talent that help strengthen PayPals leadership position in mobile payments and digital goods.
Zong allows consumers to pay for purchases from their mobile phones or computers through direct carrier billing. Consumers simply enter their mobile phone numbers. Then, in a matter of seconds, Zong verifies that number and clears the payment on the customers existing wireless service account.
eBay Inc. does not expect the acquisition of Zong to have a material impact on its financial guidance as issued in conjunction with its first quarter earnings release on April 27, 2011.