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Shares of mobile payment technology provider Bango (LSE:BGO) jumped 38.1% in early morning trading, after confirmation they had “signed an agreement to provide payment services” with Facebook.
Bango shares are now up by 37.5 pence from yesterday’s close to 136 pence, adding to the increasing trend of their shares since February 1st, when it announced it was negotiating an agreement to provide payment services to an unnamed mobile web application provider.
Since the announcement last week, Bango shares have risen 13.87% from 86.5 pence on 31st January to 98.5 pence to the end of yesterday’s trading.
However, no particulars of the contract are released publicly due to “commercial sensitivities and the early nature of the relationship”. Bango management, including Chief Executive Officer Ray Anderson are not allowed to provide any further details.
Facebook will be the latest addition Bango’s portfolio of blue-chip clients that include Amazon, Research in Motion (RIM), and Opera.
The deal is said to help Facebook monetise its mobile platform, by providing Facebook users a way to purchase credits and applications and charge them directly to the phone bill or credit cards, a service being provided by Bango.
Sales increase for both Apple products and Android mobile technology, along with the staggering 425 million monthly active users using their mobile to access Facebook can be seen as a premise for this agreement, enabling them to get a slice of the highly lucrative market.
Company Spotlight
Bango is a mobile technology provider of payment services and analytics solutions to mobile platforms, mobile operators, publishers and marketing agencies. The company was incorporated in the United Kingdom.
References
↑ Official company website
↑ Bango Comment on Negotiations to Provide Payment Services to a Leading Platform for Mobile Web Applications
↑ Bingo for Bango in Facebook Deal
↑ Facebook partners with Bango, looks to mobile payments and operator billing
↑ Bango Company Overview
