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direct mobile billing

Contributor(s): Stan Gibilisco

Direct mobile billing, also called direct to bill, is a method of paying for merchandise by charging the purchase to a cellular telephone (mobile phone) account. At the time of checkout, the customer selects the mobile billing option on a smartphone and follows a two-factor authentication procedure.

After the authentication, which usually involves a PIN (personal identification number) and one-time password, the consumer's mobile account is charged for the amount of the purchase, plus applicable taxes and, in some cases, a processing fee. Direct mobile billing does not require any previous registration, and it does not involve any other sources of funding such as credit cards or bank accounts.

Direct mobile billing has gained widespread popularity in Asia and Europe, and is gradually catching on in the United States as concerns about privacy and security are being addressed. 

This was last updated in July 2012

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