View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 8, 2011

eBay acquires Zong in $240m deal

eBay has signed a cash deal worth $240m to acquire mobile payments platform Zong to strengthen its wholly owned alternative payments service PayPals position in the m-payments game.Zong leverages connections with more than 250 mobile network operators around the world and offers localised payments capabilities through direct carrier billing for digital goods and services in 21 languages and 45 countries.

By Verdict Staff

eBay has signed a cash deal worth $240m to acquire mobile payments platform Zong to strengthen its wholly owned alternative payments service PayPal’s position in the m-payments game.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

Zong leverages connections with more than 250 mobile network operators around the world and offers localised payments capabilities through direct carrier billing for digital goods and services in 21 languages and 45 countries.

Consumers enter their mobile phone numbers, then, in a matter of seconds, Zong verifies that number and clears the payment on the customer’s existing wireless service account.

Scott Thompson, president of PayPal, expects the acquisition of Zong to allow PayPal the potential to reach those 4bn people around the world who carry a mobile phone – including people who do not have, or choose not to have, bank accounts or credit cards online.

“We believe that Zong will help strengthen PayPal’s leadership position in digital goods and mobile payments, because it brings complementary technology and employee expertise that we expect will help us grow the business even faster,” said Thompson.

PayPal expects to process $3bn in m-payments by the end of 2011, a sharp rise of $1bn from previous estimates.

The increase in mobile transactions is down to the adoption of more smartphones and a growing familiarity with PayPal said Laura Chambers, PayPal’s head of mobile.

The service now has 8m users and is seeing up to $10m a day in total m-payment volume.

“I really can’t wait to join Scott Thompson’s team over at PayPal. The energy, passion, and drive of the team combined with PayPal’s unique scale and capabilities in payments convinced me this was the right way to accelerate what we’ve built,” said David Marcus, CEO of Zong.

“Most of e-commerce will shortly become m-commerce, and I genuinely believe that PayPal, hand-in-hand with wireless carriers around the world will win in a big way. We’ll be working very hard on things that will blow your mind.”

eBay 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. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter of 2011.

 

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International