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Article

Title: Just Charge It--to Your Cellphone

Author: Buckman, Rebecca Article Type: Product Analysis
Source: Wall Street Journal, v249 n144 pB3(1) Publication Date: Jun 21, 2007
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

A new service from Danal of South Korea is to become available in the U.S. just as it is for the younger crowd in South Korea who do not have credit cards, but want a quick, easy way to pay for low-cost digital goods such as downloadable music, video, or virtual swords and guns used in computer games online. In South Korea, the popular cellphone-linked payment system allows users to charge such items, along with tangible goods such as books or cosmetics, directly to their mobile phone bills by using an authentication code that is punched into the PC. Morgenthaler Ventures, a venture capitalist (VC) company, will announced its $6 million infusion of funds to back a new Danal U.S. subsidiary. Danal, the parent, is investing $3.5 million in the subsidiary and is public traded in Korea with $75 million a year in revenue. Morgenthaler partner Ken Gullicksen describes Danal as a breakout leader in mobile payments and says the trends that bolstered the market in Korea are now arriving in the U.S. Such trends include the growing popularity of digital content and new types of mobile services. Global mobile commerce revenue is predicted to rise to more than $55 billion in 2008 from $24 billion in 2006.

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