27 July 2010 - 8:00Boku Bucks

The founders of Boku are expected to make it big in mobile payment. The start-up, founded by Ron Hirson and Mark Britto has already secured boku bills; $38 million in funding from high-profile investors like DAG Ventures, Benchmark Capital and Index Ventures.

Focused on social networks and operated on mobile phones, users can make payments for games, apps and a slew of other services – think PayPal, but for your cell.

BOKU’s system doesn’t require users to have a credit card or bank account. Instead, users enter their cell phone number on the site, reply to a Paymo text message and then all virtual charges are automatically charged to the user’s monthly cell phone bill. It’s dangerously easy.

Since its acquisition of competitors, Paymo and Mobillcash, Boku is gaining a significant international base. Paymo is already live in 45 markets around the globe, enabling mobile payments in Europe, Asian, Africa, North and South American and the Middle East.  Additionally, they have already struck deals with major mobile carriers like AT&T and T-Mobile.

Paymo has said in the past that 75 percent of the online community worldwide does not have a credit card but 3 billion consumers own a mobile phone. With the market for online payments via mobile for virtual goods and games on social networks and mobile applications expanding, there is huge potential to take off.

Expect more to come.