The new payment system combines the direct debiting system (German: Lastschriftverfahren) with SMS payment confirmation through mobile phones. That means:
- you order a product on a mobile portal or web shop
- then you type in your mobile phone number and password
- following you will receive a text message (SMS), which you have to confirm in order to debit the amount from your bank account via direct debiting system.
Prepaid customers and customers with cell phones provided by their company as well as customers of other carriers need to register once and for free for this online payment system.
Due to the handling of payments via two independent communication media, the payment security will be clearly increased according to Vodafone and O2. A prior registration giving bank account details and credit card numbers does not apply.
The whole payment service sounds very easy and promising. I am very curious about testing it.
Sources: zdnet.de golem.de