Paypal Going Mobile

aypal - the online payment service owned by eBay, is reportedly testing a new offering that allows consumers to make purchases and money transfers using simple text messaging through mobile phones.

The latest service dubbed "PayPal Mobile," is currently being tested by several eBay employees, and is slated to launch in the next couple of weeks in USA, UK and Canada - with over 55 other countries expected to follow suit.

PayPal Mobile promises to allow people make payments, buy various items, etc, using mobile devices. PayPal Mobile offers two options for transferring funds by phone; payments can either be sent over the phone via a text message, or a call can be made to an automated customer service system, and funds can be transmitted using voice commands.

In case of either option, users have to first register their mobile devices with PayPal's Web site and select a code to protect themselves against unauthorized users.

If the user opts for text messaging, he/she has to send a text message containing the amount to be transferred and the recipient's phone number to PayPal. The sender is then called back by a PayPal computer, and asked to confirm the transaction. Post this, PayPal immediately notifies the recipient and tells him/her how to claim the payment online.

In the event the user chooses the second option, he/she has to call 1-800-4PAYPAL for the transaction to be realized.

PayPal says that its PayPal Mobile service might effectively transform mobile phones into electronic wallets of sorts...