SANTA CLARA, Calif.--(BUSINESS WIRE)--KreditFly, Inc. (www.kreditfly.com), a venture capital-funded company that has operated in “stealth” for the past year, is officially launching its innovative and flexible mobile payment service today with a strong group of beta partners, which promises to fundamentally transform the way consumers use their mobile phones to make online purchases. Through KreditFlyTM, all 300 million mobile subscribers in the US can immediately use their mobile phones to complete online transactions quickly and securely, while having complete freedom to choose how they pay. Additionally, online merchants can now enjoy mobile-authenticated payments for their customers at percentage fees in the teens, as opposed to 50% for Premium SMS-based mobile payments, with full US mobile phone coverage. KreditFly also plans to make the service available for international customers in the coming months.
Paul Kim, Founder and CEO of KreditFly, remarked, “KreditFly is pioneering a way for our merchant partners to pay significantly lower processing fees, while enjoying the benefit of 300 million potential customers in the US who can become paying users. Until now, the only way to convert users quickly via mobile phone without user pre-registration was to place the charge onto the mobile carrier bill, but the high fees charged to merchants and reliability issues with Premium SMS have prevented truly widespread adoption of mobile payments in the US. KreditFly has now introduced a service that maintains all of the benefits of mobile-authenticated payments, including the speed, security, ubiquity, and high conversion rates, without the excessive fees.”
KreditFly works as follows: using KreditFly’s patent-pending Micro-creditTM process, a consumer who does not have a KreditFly account can still complete a transaction and receive his good without having to sign up with KreditFly beforehand. The buyer simply selects KreditFly during checkout, enters his mobile number into the payment page, receives a 4-digit code on his mobile phone, then enters the code back into the online payment page along with his email address. That’s it – the transaction takes only seconds, and the user gets the good from the merchant immediately. Then, within 7 days after the transaction, the user must register with KreditFly and complete payment through any of the payment options that KreditFly offers. KreditFly has developed strong, proprietary methodologies to follow up with users to ensure payment completion.
When users register with KreditFly, those who own credit cards or bank accounts can securely connect their account to these payment options. Those who do not have such options can instead choose to load up their KreditFly account with funds and use it like a debit account by purchasing various prepaid cards that are available at nationwide retail stores (e.g. Walmart, Kroger, Target, 7-Eleven, Walgreens, etc.), or by mailing in cash or money orders directly to KreditFly. Users will soon have other innovative choices, like KreditFly’s PayForMeTM option, which allows users to request one-time payment or recurring allowance from their parents or friends. KreditFly plans to continue adding new and innovative payment methods for its users over time. Regardless of the funding method, each transaction by a registered user is secured with two-factor authentication and takes just seconds to complete by entering a 4-digit code received on the mobile phone and a password established during registration.
Vu Hoang, Co-founder and CFO of Aeria Games (www.aeriagames.com), a partner of KreditFly and leading online game publisher with over 15 million members, asserted that “with KreditFly's low fees and accessibility to all mobile users, we expect a dramatic increase in conversion of non-paying users to paying users on our site. KreditFly cleverly uses the mobile phone to extend credit to our trusted community, while creating strong accountability and follow-up for payments.”
KreditFly also brings a social aspect into play, rewarding users generously for activities like paying with KreditFly and inviting friends. Users earn KreditFly Points, which can be used like cash at partner sites to get free things like in-game items, virtual currency, music, etc.
KreditFly is launching its beta service with a select group of companies and games, including Aeria Games (www.aeriagames.com), Age of Champions (http://apps.facebook.com/ageofchampions by KlickNation), and Destiny Stone (http://apps.facebook.com/destinystone by Manic Frog). The company is growing its merchant partnership quickly and will announce additional partners shortly.
KreditFly is an innovative company that seeks to transform the payments industry by bringing mobile-authenticated payments with flexible payment options to all users, while dramatically bringing down mobile payments fees for merchants. The company was founded by veteran thought-leaders from the mobile payments industry, led by Paul Kim, who was the founding CEO of BilltoMobile. KreditFly is funded by Altos Ventures (www.altosventures.com) and ATA Ventures (www.ataventures.com), two Silicon Valley-based venture capital firms.
About Beta Merchants
Aeria Games (www.aeriagames.com) is one of the leading independent online game publishers in the world, with over 15 million members in its community. Aeria features popular game titles such as Shaiya, Last Chaos, Dynasty Warriors Online, Twelve Sky 2, Wolf Team, and Kingdom Heroes, as well as other fantasy MMOs, casual MMOs, FPS, and browser games.
Age of Champions (http://apps.facebook.com/ageofchampions) is a popular, action-packed role-playing game on Facebook that is set in a medieval fantasy world, where humans, elves, and minotaurs lead massive armies to battle. The game is published by KlickNation, a leading social gaming company, which also publishes Superhero City and Happy Zoo.
Destiny Stone (http://apps.facebook.com/destinystone) is an anime role-playing adventure game on Facebook that is set in a beautiful fantasy world, where you learn and craft magic spells, make friends, and go on romantic dates to unlock the game’s engaging storyline and save Nassaria from the evil God of Destruction. Destiny Stone is published by Manic Frog (www.manicfrog.com), a new social entertainment company started by veterans of the gaming space.