Mobile payment startups Kwedit and Boku are developing methods to pay for virtual goods for use with Facebook games. Kwedit is scheduled to announce a service that enables gamers to purchase virtual currency if they promise to pay later at 7-Eleven stores or send money by mail. Boku users can purchase goods by entering a cell phone number rather than a credit card, and Offerpal Media lets users receive virtual cash by enrolling in services such as Netflix. Analyst Atul Bagga says many Facebook game players lack access to credit cards, and notes that "if you make the process seamless, it's definitely going to help, and mobile plays a big part." Bagga estimates that the virtual goods market may be worth $3.6 billion by 2012. Analyst Justin Smith says startups such as Kwedit may branch out into new areas such as e-commerce transactions or online music and video purchases, but first they must demonstrate that their business models work with virtual goods and enough people choose them over PayPal and credit cards. Boku co-founder Ron Hirson says social game companies are more willing to accept the higher rates than traditional merchants because they incur zero costs in producing virtual goods.