Payfone, a leading mobile payment processing service, and Fortumo, a leading provider of mobile payments, today announced that Fortumo has selected Payfone to power the direct billing option for its in-app purchasing SDK. This direct billing mobile payment method offers better reliability and higher security, as well as better payouts for developers. Through the partnership, Fortumo’s clients will be able to provide consumers with the ability to make safe and secure mobile payments in real-time from any device, such as PC, smartphone, tablet or Wi-Fi.

“We are excited to work with Payfone because of their deep integration with mobile operators’ billing systems,” said Rain Rannu, co-founder of Fortumo. “This in turn will allow us to continue to provide the highest converting in-app purchasing with more payment options for our clients.”

Payfone’s Mobile Commerce Service is directly integrated into the mobile operator’s network, which provides the ability to intelligently identify a consumer’s profile in the system, offering true payment authorization and authentication.  Payfone’s Device DNA authenticates the consumer across a wide variety of parameters during the transaction, ensuring they get exactly what they paid for.

By pairing the Device DNA to each transaction, Payfone is able determine if a transaction is from a lost or stolen mobile device or if the owner of the mobile account has changed. It’s an important focus on mobile transaction security, as the industry faces a number of challenges in this arena.  Still a relatively young industry, mobile payments has already seen a few hiccups, the latest outlined in the discovery of Square’s mobile app fraud potential.

What sets Payfone from other payment services is that it guarantees a more secured payment method by eliminating abandoned and failed transactions because it only requires a one-time SMS PIN verification so you don’t have to input it every time you make a purchase.  They also eliminate identity theft by authenticating their users with the use of different parameters.  It also provides a flexible payment method option that allows consumers try the app before purchasing it that creates a more consumer-friendly environment, making sure that consumers only pay for the things that they really want.  And they also give a detailed info on your bill regarding your purchases.

For Payfone, the deal gives the mobile payments provider a wider playground to access, in an industry that’s booming, and attracting the likes of PayPal, and even traditional financial institutions, such as credit card providers American Express, Visa and MasterCard.

“We are pleased to be working with Fortumo to provide their clients with the most robust in-app mobile payments solution on the market,” said Rodger Desai, chief executive officer, Payfone. “With this partnership, Payfone’s technology will be leveraged for some of the largest mobile payment implementations worldwide.”

Fortumo is utilized by Rovio, Angry Birds developer, for their in-app purchasing on Android devices as well as Barn Buddy that allows gamers to buy Facebook coins.  They boast of a service that makes it easier for games and apps developer to receive payment in just four easy steps that begins with choosing the right account, setting up an account that doesn’t require a start-up or monthly fees, enables proprietors to go live the next day and earn revenue from each user immediately.

But the mobile payments industry is becoming so popular that it’s attracting its own trouble in the larger mobile ecosystem.  Even this growing sector is becoming subject to patent wars, as Lodsys files suits against 11 Android developers, claiming they infringe on mobile payment patents.  Google’s stepped in to help its treasured developers, a smart move considering in-app payments is a promising point of differentiation for Android vs. iOS when it comes to expanding revenue opportunities and marketing capabilities of these competing platforms.