Microsoft is paying developers to build mobile applications for its Windows Phone 7 system to help it narrow a lead by rival products from Apple and Google, reports “Bloomberg” (http://macosg.me/2/j7).

The company is providing financial incentives ranging from free tools and test handsets to funds for software development and marketing, said Todd Brix, a senior director at Microsoft who works with app developers. In some cases, Microsoft is providing revenue guarantees, and will make up the difference if apps don’t sell as well as expected, he told “Bloomberg.”