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Paypal Tests Payments via Cell Phones

Ebay, Paypal May Go Offline Business

by Anton Shilov

[ 03/22/2006 | 09:36 PM ]

Paypal, the online payment service owned by eBay Inc., has begun testing a new offering to allow people to make and receive payments using cell phones and other mobile devices. Potentially, such a move may allow Paypal and eBay to go offline with their payment systems, provided that they ink deals with traditional stores.

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“Paypal Mobile is being tested by an unspecified number of eBay employees and will be available to the public in the United States, Canada and the United Kingdom in the next few weeks. Paypal Mobile will allow people to make person-to-person payments, buy items and donate to charities using mobile devices,” said Amanda Pires, a spokeswoman foe eBay.

Users who wish to use the capability will have to register with Paypal’s web-site to obtain special security codes. While mobile payments is nothing new in certain countries, not a lot of cell network operators or banks have a client base of about 100 million accounts.