Mobile app payments company Bango soars on tie-up with O2

BRITISH mobile payments company Bango saw its shares rise almost nine per cent yesterday as the company launched a tie-up with Telefonica that will allow O2 users to pay for apps via their mobile bill.

Bango is bringing the service to Telefonica’s 314m customers across the world, including UK network O2, which the Spanish telecoms giant owns.

The deal means O2 users will be able to pay for apps on Android, Windows and BlackBerry smartphones, and on Facebook’s mobile app centre, for adding games and programmes that run on Facebook.

Bango says that mobile users are more likely to finish transactions using its software than by credit cards or text messages, which take longer to complete.

The company, which takes a cut of any transaction, has seen its market value more than double in the last year as it has signed agreements with the likes of Facebook and Google.

It sees greater gains as it expands into developing markets, where many customers do not have credit cards. Yesterday’s Telefonica deal is crucial to this strategy, given its strong presence in South America.

Despite its growth, Bango is not yet in profit. It saw £2.4m of losses in the nine months to January.