Vodafone Android users are first to pay for apps via their phone bill

In The Telegraph

The move is being seen as an attempt to retain control of the crucial payment relationship operators have with their subscribers, which has been challenged by app stores run by Google and Apple.

Initially only Android phones bought directly from Vodafone online, or from its high street shops, will be eligible for the new payment scheme, but there are plans to extend it to all handsets. Both monthly subscribers and pay-as-you-go users will be offered the chance to pay for apps from Google's Marketplace through Vodafone.

The network is encouraging app developers to use the service by claiming that they will sell more software because some Android users are reticent to provide their credit card details to a third party. Many young pay-as-you-go users may not even have a credit card.

“This evolution in Android app payment greatly improves the user’s purchase experience and consequently their likelihood of completing a sale,” Vodafone said on its developer blog.

“In addition to facilitating the best possible user experience, Vodafone operator billing extends your reach to the large number of app buying customers who are unwilling or unable to use credit cards.