E-Commerce retailer eBay has agreed to acquire mobile payments provider Zong for $240m.
The California- based eBay said that the all cash deal is expected to close in the third quarter.
The company hopes that the deal will help in the expansion of its smartphone services and digital goods markets. Zong works with over 250 mobile network operators in 45 countries.
Zong offers online services to users to buy virtual goods on social networking sites and online games through their mobile phones. Users do not need a credit or debit card to buy goods, Zong verifies the phone number and the amount is reflected on the user’s phone bill.
Among Zong’s customers are Zynga, Walt Disney and Facebook.
Earlier this year, eBay said that it had posted first quarter revenue of $2.5bn, an increase of 16% compared to $2.2bn in the same period last year, primarily driven by the continued growth in PayPal business.
The payments business unit reported revenue of $992m, an increase of 23% year-over-year compared to $809m in the same quarter previous year. Marketplaces business unit recorded $1.6bn in revenue, compared to $1.4bn in the same quarter previous year.
eBay president and CEO John Donahoe had said that in the first quarter, PayPal continued to drive strong growth globally, and that eBay sharply accelerated growth in the US.
Donahoe had added the company announced several acquisitions that they believe will enhance their leadership and innovation in commerce and payments.
