American Express has announced a strategic alliance with mobile pay firm Payfone. In addition, American Express will invest an undisclosed sum in Payfone. American Express will integrate its Serve digital payments platform into Payfone to let consumers pay for purchases from online merchants using on their mobile phone number. Consumers can choose to tether their mobile phone number to a variety of payment methods, including prepaid and postpaid mobile operator accounts and Serve accounts. For American Express, the Payfone integration is an important step in the international rollout of Serve.
“This alliance brings together Serve’s unified online, mobile and real-world functionality with Payfone’s advanced mobile authorization and payment services to deliver a seamless payment solution,” said Dan Schulman, Group President of Enterprise Growth at American Express, in a press statement. “The alliance is an important next step for the international roll out of Serve. We look forward to working with Payfone as we evolve the Serve platform to provide the most advanced payment solutions for buyers and sellers, while setting new standards in security, simplicity and reliability.”
Payfone says its different from other mobile pay provides because it leverages the assets of mobile operators, including the global SS7 signaling network, for directly connected payment authorization and processing. Payfone focuses on driving conversion and revenue for merchants while managing fraud using new forms of authentication. Payfone says that for consumers this approach gives a greater variety of choices in payment methods and the most frictionless mobile pay experience.
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