TELECOMS & MOBILE
Mperium creates SMS-based micro-payments
19-02-2002
by Bernie Goldbach
Dublin-based mPerium has launched a new payments solution following the introduction of premium SMS numbers in Ireland.
Web sites using mPerium's TextKey application allow visitors to view a restricted or paid area of a Web site by requiring them to enter a password or code received via SMS.
To get a password, users will need to send a request from their mobile phone to a special 5-digit premium rate SMS number and are charged a small fee for the request. The visitor then receives a return path text message. This message debits a premium rate charge to the person's phone bill and also includes a uniquely generated code, which the person can use to log into the Web page or article.
Web site owners ultimately receive their share of the payment from the network operators.
The company says that since it is not tied to merchant accounts or credit card billing systems, it is able to give higher margins to businesses selling low-cost products on-line, such as content.
"This will really open up the market for revenue generation for both mobile and Web-based content," said Declan Matthews, managing director of mPerium.
TextKey uses the 5-digit premium SMS codes released last month by the ODTR, Ireland's telecoms regulator. These codes are similar to the 1550 series of premium rate telephone numbers which have been used by Irish customers to check the weather, qualify to be on game shows, or just chat.
The firm claims that the newly introduced premium SMS technology will dramatically increase the reach of a pay-for-view marketing campaign. "What we do here will be duplicated in other countries," says Gaddo Benedetti, mPerium's technical director.
The ODTR has offered 4,100 codes to applications developers already and has another 4,900 ready for the taking. According to the telecommunications regulator Etain Doyle, the new services will initially be offered on existing SMS systems but are likely to advance into enhanced SMS services and then 2.5G and 3G systems.
According to the GSM Association, more than 25 billion SMS messages were sent worldwide in December 2001. Vodafone analysed the data for the past three years and reports the number of text messages is growing 300 percent annually.
In the Irish segment approximately 14 percent of Eircell Vodafone's call volume is text messaging, compared to a Vodafone world average of eight percent.
For more information visit http://www.mperium.com
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