Boku Launches Phone-on-File Payments to Compete with Credit Cards

Boku Launches Phone-on-File Payments to Compete with Credit Cards

February 27, 2015         Written By Justin Hefner

Boku, a mobile payment solution using carrier billing, has created a program called Phone-on-File that allows phone numbers to be stored for one tap purchases, much like a credit card. The stored numbers can be used for both one-time and subscription purchases that are approved by the carrier for delayed billing.

The idea behind Phone-on-File is fairly simple. You use an app to save your phone number as a payment option. When you go to make a one-time purchase or pay for a subscription that your carrier approves, Boku uses your saved information to complete the checkout process. You don’t need to enter your phone number or credit card number. The transaciton is streamlined, much like it would be with Apple Pay.

Jon Prideaux, Boku CEO, said the company was inspired by the “frictionless checkout experiences using stored credit card information” that Amazon, Apple Pay and other companies use.

“This is that same experience that Boku is bringing to the mobile phone number with Phone-on-File,” said Prideaux. “Our goal is to make stored ‘phone-on-file’ every bit as powerful as a ‘card-on-file’ for the benefit of our merchant partners.”

Boku’s new platform gives merchants the ability to integrate carrier billing into their existing payment systems, and also allows them to schedule when they will take out payments for monthly subscriptions. While it may take some time for people to adapt to one-touch carrier billing options, this could be a great way for people to spend money without necessarily using their credit cards.

Phone-on-File is currently available in the United States, the U.K., Germany and Italy, but there are plans to expand in the next few months.

The information contained within this article was accurate as of February 27, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Justin Hefner

Justin Hefner is in the education field and has written about a number of financial issues. He holds a Bachelor of Arts degree from Texas Tech University and a Masters in Education from Texas State University.
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