Today, when credit card frauds have increased significantly and even moved to social networks like Orkut, it is wise to consider extra payment forms. It all depends on the service you are running, but the overall trend shows that people are thinking seriously before they are providing credit card data. Obviously it is difficult to substitute credit cards, but it is possible to give people alternative payment forms. People who tend to be suspicious or recently read about credit card frauds would like to use something more secure or at least something that seems more secure to them.

For smaller payments I would suggest SMS-billing as an alternative. It has its own disadvantages, but studies have shown that people sense it as secure, anonymous and easy to use payment method.

Here are some points why web based company should consider SMS-billing:

• almost everybody can use it – over 95% of people in most of the developing and developed countries carry a mobile phone,
• people can use it despite the location or time,
• you are able to target young people and reach those who don’t have a credit card,
• people are using it impulsively – SMS-payment is simple and doesn’t take time,
• smaller prices drive people to consume more,
• no chargebacks – people don’t have to worry that something extra is taken from them,
• it supplements the existing revenue stream – our experience with web based companies have shown that while integrating SMS-billing as an extra option, revenues have increased,
• people sense it as more secure measure, because they don’t have to share their personal data.

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