M-payments start-up Boku purchases Paymo and Mobillcash

Boku, online mobile payments start-up based in San Francisco, has raised $13 million in venture funding and acquired micropayments outfit Paymo and m-payments firm Mobillcash. The Boku payments service enables global consumers to make online purchases of digital and virtual goods with their mobile phones. The company has been operating in stealth mode for about a year, but has now launched with $13 million in venture funding led by Benchmark Capital, with participation from Index Ventures and Khosla Ventures. The company currently claims carrier coverage in 53 countries and a potential 1.6 billion global consumer base. Boku will be targetting the mass-market for virtual goods and gaming, which is currently estimated to be worth some $8 billion. Through Paymo, the company started an alliance with social network hi5 and will be looking to place its payments gateway on the Websites of other online gaming companies and virtual communities. To pay for goods and services online consumers need only enter their mobile phone number, with payments charged to the monthly phone bill. No registration and bank accounts are required, thereby offering a medium for the unbanked to participate in online pay-to-play commerce. Mark Britto, CEO for Boku, says: "The strength of these two acquisitions and our recent financing will help us strategically to enable global consumer adoption and accelerate global carrier coverage."