Juniper estimated that in 2017, the total value of digital content paid for via carrier billing was approximately $19.7 billion worldwide, up by around 42% y-o-y (year-on-year).
Remote micropayment purchases – anytime / anywhere
Inspiring impulse purchases
Valuing (semi-) anonymous purchases
Enabling un- and underbanked consumer purchases
Monetising younger demographics
Looking at the digital content market as a whole, we can see that credit and debit card billing in 2017 continued to account for the vast bulk of the total (80 percent), a proportion which will diminish gradually over the forecast period, primarily due to the greater availability and uptake of Direct Carrier Billing solutions.
Debit and credit card ownership in undeveloped and developing markets is sometimes extremely low. There are more than 2 billion unbanked adults worldwide and more than 80 countries have an unbanked percentage in excess of 50 percent. Adopting Direct Carrier Billing can enable payments amongst a far wider and complex user base.
Reaching the Digital Generation with Direct Carrier Billing
Digital natives – that generation raised on technology – feast on more online content today than ever before. This key demographic is no longer tied to traditional media, such as TV and PCs to entertain themselves, and, as a result, these young consumers don’t organize their lives around those devices. Instead, this is a generation that seeks to embrace solutions that manage as many day-to-day activities as possible on the go.
We at DIMOCO often see a gap between a great mobile product and the payment check-out with our customers. Making the payment process simple and easy results in an increase of conversion rates, simple as that.
Therefore, providing a payment option that is convenient, available anytime and anywhere with a 1-click-payment as a measurement to improve the customer journey can only be seen as more than just important, it is a vital key to a successful business model.
And that is a promise Direct Carrier Billing (DCB) lives up to, as ideal for impulse, remote and quick micropayment purchases, valuing (semi-) anonymous buys.
Studies have shown that DCB scores 70% convert for first transactions, compared with credit cards struggling at 10 – 12%.
However, it is not only about improvement, a likewise important point is to consider offering a payment method that people actually have. Whilst credit and debit cards are for instance not available to those underbanked, a mobile device is a potential payment method that everybody holds in hand, scoring a 100% reach.
“You can have a state-of-the-art website, an exciting product, even an amazing marketing and sales team; you will not reach your revenue goals if you offer credit cards as your only payment option. It is a simple equation: users cannot pay with something they do not have and will not if they find the checkout process too much hassle.”
Bettina Sommer, SVP Sales, DIMOCO Carrier Billing
We provide a payment method available on all devices and that literally everybody has access to.
It is quick and easy, available to those with a mobile phone but no credit or debit card, or unwilling to use such for micropayments.
One of the clear advantages of DCB is that it enables merchants to offer an additional billing option across a range of connected devices.
DCB’s capacity to bill across multiple connected devices, conceivably any connected device, such as smart TVs and devices now means that it can stand comparison with mechanisms such as payment cards.