Yesterday, Techcrunch reported that mobile payments startup Boku (now calling themselves Paymo) raised $25 million in series C funding led by venture firm DAG Ventures. Since its launch in June, Boku has raised $38 million in funding.

The way it works is that to make a micropayment, Boku  users enter their cell phone number on the website, reply to a text message, and all virtual charges are tacked onto their monthly cell phone bill. This is great since users don’t need to have a credit card or bank account to make a micropayment.

Boku recently acquired its competitors Paymo and Mobillcash, and with this acquisition gained a strong base of users internationally. No joke: Boku boasts service in 58 countries and 190 carriers with more countries stepping into the queue.

One of the major problems mobile payments platforms face is high fees stemming from mobile carriers. This can represent anywhere between 10-50% of purchase price….also nothing to joke about. However, Boku is in the process of negotiating these fees down, first in Europe then hopefully followed by the US.

Boku’s major competitor is Zong, most well known for providing virtual currency via Facebook.