Carrier Billing Solutions Boosting Frequency and Value of Transactions

A new report from Juniper Research has found that the annual number of purchases made on mobile handsets and tablets is expected to reach 53 billion by 2016, almost double the 27 billion made last year.

The report – Mobile Payment for Digital & Physical Goods: Opportunities & Forecast 2014-2018 – found that the majority of these purchases (around 80%) would be accounted for by digital content and mobile ticketing solutions. It argued that transaction volumes would receive a significant uplift as an increasing number of OTT (Over The Top) storefronts introduced direct carrier billing solutions to supplement credit/debit card payment facilities.

According to the report, storefronts that implement direct carrier billing can monetise younger demographics and unbanked users for the first time. It found that storefronts which had already introduced direct carrier billing had already seen a sharp rise in paying users, purchase frequency and average transaction value. The trend is particularly pronounced in developing markets: in Indonesia, carrier billing now accounts for 83% of all transactions.

Operators Fear Bill Shock Fall-out

However, the report observed that, despite the opportunity afforded by carrier billing, a number of network operators – particularly in Europe – remain wary of implementation. According to report author Dr Windsor Holden, “These concerns revolve primarily around any fall-out from bill shock. Give the ease of purchase from carrier billing, consumers might argue that bills were run up inadvertently, or that their children had borrowed their handset and made the purchases. The fear is that customer services departments could be swamped.”

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David Dungay

Editor - Comms Business Magazine