Verizon, Obopay Link on Mobile Payments

Verizon Wireless has partnered with mobile payment service Obopay to give its customers the option of using their phones as payment devices.

The service runs as an application on phones that support BREW. After downloading, customers register for an account through the phone or via Verizon Wireless' Web site, and can invite their friends to join as well.

Money can be sent to any cellular phone on any network, however the receiving party must have an account with Obopay in order to collect the funds. Eventually Obopay could be accepted at merchants as a form of payment.

Currently, the Obopay phone application allows consumers to purchase items from the phone, or use a MasterCard to spend or withdraw the money from their accounts.

"We look forward to working with Verizon Wireless to deliver our mobile payments services to its customers," Obopay CEO Carol Realini said.

Mobile payment services are a fairly new industry in the United States. Other payment services, including PayPal, are taking steps to enter the market, and more are expected to join.

However, it still remains unclear how consumers will respond. While payment-by-phone services have done well in Europe, consumers there seem much more apt to adopt new technologies.