Silicon Valley News

Monday, October 25, 2010

Android apps get boost from mobile payments startup

Compared to the iPhone, "It's harder to make money on Android, so people aren't rushing to support their applications," says David Marcus, the CEO of  Zong, a small mobile payments startup.

The payment system used by Android is time consuming and not user friendly. With a single click, an iPhone user can make payments through iTunes. In the battle to win developers, Android is faced with the challenge of simplifying its cumbersome billing system.

Lauren Azulay is in charge of billing for the social networking site Flirtomatic, which has over three million users in Britain, the U.S. and Germany. People who use the Flirtomatic iPhone app like the one-click payment method. On the other hand, Flirtomatic users on Android devices consider the billing system "a huge frustration," says Azulay.

Silicon Valley startup Zong recently introduced a one-click billing system (watch demo)  that bypasses the established Google method  to make it easier for users of Android phones to make payments.

Zong got a big boost earlier this year when it garnered a $15 million investment from Dana Stalder, a former executive of the online payment pioneer PayPal now owned by Ebay.

Zong's CEO explains the new one-click mobile payment paradigm in the video below: