A mobile payment system that may actually catch on

We've seen several mobile payment solutions over the last six years or so. Most are out of business and none got into the mainstream. The ubiquitous mobile content payment method is premium SMS, which, obviously has limitations as to the range of transactions it can support. I took a quick look at Paypal mobile and there are three things that I like about it.

1. It appears like it's uncomplicated to use; the user does not have to remember a particular routine to go through in order to expedite a transaction.
2. Paypal is an established player with a large installed base in many countries. Both infrastructure and brand-based trust will not be a problem.
3. They seem to be offering more than just another payment solution. It's a different way of thinking about shopping: I see something in an ad, a billboard, or a product placement, and I can buy it instantly and on the spot with a simple SMS. Now, that's compelling!

The concept (No 3) is the most important. Success will depend on the other two and, also, on how many and how soon Paypal can sign up vendors and advertisers.

More than that, this purchasing concept may spawn a new generation of advertising-based content models, where product placement (in a movie, TV episode or video clip) may generate show-time/real-time sales. This may be a good way out for those content providers who suffer from file sharing.