The New Hotness - Mpayy Gets its First Press

From Internet Retailer - http://www.internetretailer.com/dailyNews.asp?id=25119

New mobile payment service eschews cash and checks for phones

Mpayy Inc., an online and mobile payment processing company, will launch tomorrow a service that enables merchants and shoppers to conduct retail transactions using mobile phones and online payment accounts. Shoppers can use the Mpayy service with roving salespersons or on retail web sites.

Merchants set up accounts on Mpayy.com to establish a mobile payment system. Mobile merchants�Mpayy is not yet targeting bricks-and-mortar retailers�can access reports on sales, send funds to desired banks, manage refunds and perform other tasks through a web-enabled administrative application. Shoppers set up accounts on the Mpayy site, entering their mobile phone number, account nickname, and checking account information.

To conduct a transaction with a roving merchant�an Avon lady, for example�a shopper logs in to Mpayy�s mobile web site and enters the merchant�s mobile phone number or nickname, enters the amount of the purchase, and submits the information, which brings up a transaction confirmation page with a Pay button to complete the purchase. Once completed, the buyer gets an e-mail or text message confirmation and the seller gets a text message confirmation.

�Mpayy turns mobile web-enabled phones into point-of-sale systems. So, the 30 million independent salespersons in the U.S. no longer have to handle cash or checks and can get instant verification of guaranteed funds,� says Trace Johnson, vice president of product, marketing and operations.

To conduct transactions on a retail web site, the service works much like Paypal�s, for example. To enable Mpayy transactions, e-retailers create a servlet�a small, Java-based application that runs in a web server environment�to handle an http double post�secure payment confirmation messages�on their e-commerce sites. On the payment page of a participating online merchant, a shopper selects the Mpayy option and enters her mobile phone number or account nickname. The checking account entered during account set-up is charged and the shopper is sent a confirmation notice via e-mail.

LawBooksForLess.com is the first Internet retailer Mpayy has signed up. It is in negotiations with others to launch the service online.

Mpayy merchant transaction fees start at $0.20 plus 2% of the transaction, though it will negotiate lower rates with retail web sites that can bring high monthly transaction volume. The company, which charges no set-up, maintenance or hardware fees, will assume all fraud liability on any transaction. The service is free to shoppers, who receive 1% cash back on purchases that exceed $50.