Mopay Offers Telco Billing Payment Option For Online Dating Services

Romantic hopefuls lacking a checking account or a credit or debit card soon may have another option to pay for online dating services.

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Alternative payment channel specialist Mopay Inc. on Jan. 24 announced plans to add online dating to the list of services its users can purchase via their monthly telecommunication carrier bill.

The Palo Alto, Calif.-based unit of MindMatics AG of Munich has offered its alternative billing option for a decade through carriers in 80 countries, targeting unbanked consumers and others in regions with low credit card penetration (see story).

Mopay has relationships with more than 380 telecommunication providers worldwide, a spokesperson says

So far, most Mopay purchases consist of online games, entertainment and other low-ticket digital goods, Mopay says.

Online dating is a new frontier, which Mopay believes will appeal to consumers “who do not have bank accounts or credit cards (as) a safe and easy option to leverage online dating services,” the company said in a press release.

The option will enable consumers to make single and recurring payments for online dating services of up to $50.

Mopay customers making online purchases through a merchant that offers its payment service must enter their mobile telephone or landline number at checkout. Mopay then sends a text message to a mobile phone to confirm the purchase, or it requires a customer using a landline number to dial a toll-free number to authorize the purchase.

Mopay is “in discussions” with various online dating services but has not yet announced any offering the services, a spokesperson says.

The opportunity to extend online dating services to Mopay’s existing customer base is not far-fetched, Rick Oglesby, a senior analyst at Aite Group, tells PaymentsSource.

“Services enabling merchants and consumers to bill low-cost online services to mobile-phone statements is a small, but growing, niche,” he says. “Online dating services, as long as the price point isn’t high, could be part of the same logic.”

But it may be a stretch to assume that online dating enthusiasts are demanding such an alternative payment channel, Oglesby suggests.

“This makes more sense for downloading a ring tone or a game, but for customers purchasing ongoing online dating services or any other recurring service, it would probably make more sense to use more mainstream billing channels,” he says.

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