This _IS_ a solution for payments outside the USA. Do you know how many countries with a rapidly growing middle class that Visa, MasterCard, etc won't touch because their crappy credit models can't deal with these people?
This is a game changer that allows people who haven't been able to buy online to do so..
That's interesting. I went to a presentation last year where the presenter (I believe she was from paypal) was saying that the US was many years behind several other countries on payment methods, especially SMS.