This spells trouble for existing mobile payment provider TextPayMe. PayPal’s solution is fully baked, easy to use, and has some great features that take this beyond a way to text your friends money.
To use the service, click here and sign in (you must have or create a PayPal account to view this). You need to register a phone and create a PIN. PayPal uses an automated system to call you on the phone and verify the PIN, and the phone is then usable.
To send a person to person payment, you either text the payment amount and recipient’s phone number to PayPal, or call a toll free number and follow the directions.
PayPal Mobile can also be used to pay for stuff as well. It’s called Text to Buy:
Anytime you see Text to Buy next to something you want to buy—on a poster, in a magazine, at an event—you can securely order the item by text message.
Use your phone to buy items like CDs, DVDs, books, electronics, accessories and much more.
To use it, you text PayPal the item number, and they call you back to confirm the purchase. Done.
I’ve confirmed that there are no additional charges for using PayPal Mobile. If you have a business or premium account, normal fees to receive money apply. And, of course, most mobile carriers charge for text messages.