paymo logo ‘Paymo’, mobile payment network for online merchants, raises fundTechnology has always helped us in making our lives easier. Mobile online payment is also one of those technologies. The technology allows you to pay for your good using cell phones. Paymo has enabled this technology. The company has raised $5 million in the first round of funding. Though the angel investors remain classified.

The San Francisco based company which contains only 11 employees, was founded last year with an aim of easing the purchase of downloadable online goods for customers through cell phones.

According to the company’s CEO, Paul McGuire:

Online social networking, gaming, and music are fuelling explosive growth in the digital content markets and 70% of the online population has no credit card but has a mobile phone.

Paymo is uniquely positioned, due to its innovative business model, technology architecture and experienced team, to enable web and mobile merchants worldwide to increase digital content sales, reaching new customers and markets.

Following is the press release of the company:

(MARKET WIRE via COMTEX) — Paymo, Inc., formerly mTN Global, today announced it has raised $5 million in seed financing. Paymo is the first company to address the needs of online merchants for a global micro-payments solution for digital content and services. The digital content market is expected to exceed $100 billion by 2010, driven by growth in online social networking, gaming, music and video. Paymo, Inc. was founded by a team of seasoned executives with in-depth experience in mobile messaging, micro-payments and financial services and proven successes in startup and high-growth companies. The financing round was provided by prominent angel investors in the United States and Europe and will be used to accelerate product development and marketing.

Paymo connects online merchants with the world’s 3+ billion mobile phone users, enabling purchases of digital content and services to be charged to the mobile phone bill. Easier to use and with more global reach than any other micro-payments solution, the Paymo network is built on a unique connectivity architecture and technology platform that makes it possible for web and mobile merchants everywhere in the world to increase digital content sales by reaching any consumer with a mobile phone in any country.

The company will have a tough time as they have competitors like eBay (PayPal). Lets hope they do well in the coming days.

Paymo company profile provided by TradeVibes