DaoPay, an Austria-based provider of mobile phone payment solutions, has agreed to acquire the pay by call payment business of Boku, a US-based mobile payments startup, for an undisclosed sum.

The deal is expected to complete in the third quarter of 2015.

This acquisition is expected to expand DaoPay’s position in the pay by call sector and make it the largest processor for pay by call payments globally.

DaoPay CEO Peter Krapfl said: "With this strategic purchase we are able to strengthen our position and serve more clients than ever before."

DaoPay is a phone payment service that allows users to pay by phone in 54 countries around the world using mobile or landline phones. It is used for purchases of digital content such as virtual goods, in-game purchases, membership/subscription fees and other services.