T-Mobile USA expands carrier billing to digital purchases

T-Mobile USA introduced Direct Carrier Billing, a new m-commerce solution allowing subscribers to purchase digital content and services directly via web-enabled devices including smartphones, tablets, netbooks and PCs.

Initially leveraging billing services provided by partners BilltoMobile, Boku, OpenMarket, Payfone and Zong, T-Mobile Direct Carrier Billing enables consumers to charge online purchases of digital games, gaming and social networking credits, music, videos and related digital goods directly to their monthly wireless bill without manually entering credit card information. T-Mobile USA and its billing service partners will monitor all transactions, offering fraud controls, age-appropriate content blocking, spending limit management tools and promising a two-step customer authentication and purchase verification process.

T-Mobile USA will roll out Direct Carrier Billing later this month across designated online storefronts and merchant websites. The carrier states it will expand the program to additional strategic billing service partners and content providers in the future.

T-Mobile USA added direct operator billing options to Android Market application purchases in late 2009. Late last year, the carrier teamed with Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T) to launch nationwide mobile commerce network Isis, promising services enabling consumers to conduct point-of-sale transactions, redeem coupons and use store merchant loyalty cards via mobile device. Isis will offer Near Field Communications-based contactless transactions in partnership with financial services providers Visa, MasterCard, Discover and American Express.

AT&T teamed with BilltoMobile, Boku and Zong in late 2010, unveiling a mobile payments trial similar in scale and scope to T-Mobile Direct Carrier Billing. In March 2011, AT&T agreed to purchase T-Mobile USA from parent Deutsche Telekom for $39 billion in cash and stock. The deal still awaits lawmaker approval.

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