Direct Carrier Billing Is Reshaping The Digital Economy

Did you know that there are more mobile devices than people in the planet today?

Mobile phones is so common in society today, that you can see people from all levels of society holding a smart device. The constant connectivity has changed the way we communicate, shop, do business and even live.

One of the biggest impact mobile phones have had is on the payments industry. Mobile payments are disrupting the banking system around the world as it is faster, easier and more convenient for consumers to make purchases. Mobile payments are even expected to overtake credit cards. A study by Visa found that 69% of 18 to 34 year olds have used a mobile banking app, half of them regularly.

In Asia, mobile payments are estimated to be 50 times more popular than the rest of the world. The pandemic has only accelerated this trend. While e-payment apps and mobile banking are the main payment channels, there is one solution that has gotten little notice until now – Direct Carrier Billing (DCB).

With DCB people can buy content, shop online, make contactless payments or even transfer funds to friends and family by integrating the payments with their mobile carrier bill. In March, Apigate announced our DCB solution for Dialog that enabled a secure and seamless journey for customers when they subscribed to Spotify. 

More merchants are starting to wake up to the fact that DCB is more than a payment solution. It has great value-add such as built-in security, consumer analytics and market access. Here are 5 reasons why the potential of DCB is under realised and why it is set to be a big winner in the digital payment segment.

1.DCB complements mobile commerce

With revenue from core telco services such as traditional voice and messaging services declining, operators are looking for new sources of revenue. With mobile commerce growing at a dizzying rate, digital payments and OTT services presents great opportunities for telcos and merchants. Besides, DCB supports smartphones, tablets, and even feature phones, making mobile commerce widely accessible to consumers.

2. Demand for frictionless payment experience

As consumers’ mobile purchase habits develop, users are also increasingly expecting a streamlined experience. Users want to have as little friction as possible when making a purchase, with as few steps as possible involved in the checkout process. Currently, only DCB is able to offer this experience. Consumer purchases can be registered and charged to the user’s mobile bill in just one click. Comparatively, DCB reduces up to 5 steps of the payment process compared to credit cards.

3. Reduced security risks

Consumers also expect a high level of security to avoid the risk of cybercrimes from contactless payments. DCB is the probably the safest and fastest method to shop online. Because users are already registered with their mobile operators, DCB enables customers to skip sharing their personal data or bank details. DCB also benefits from telcos’ high level of security systems which ensures high-level payment security.

4. Increasing partnerships between telcos and OTT players

DCB provides a great opportunity for telcos to increase their revenues and for merchants to achieve higher conversion rates. Mobile bundling is one of the biggest opportunities DCB. Telcos can claim a share of the revenue generated by subscribers’ purchases, while merchants have access to the telcos captive market. The market for mobile bundling is expected to grow at almost 30% in the next 5 years, with video and music the top choices for OTT bundled services.

5. Huge growth potential in emerging markets

Emerging markets hold key opportunities for DCB. With rapid development, more and more people are able to afford mobile phones. However, much of the population in emerging markets have better access to mobile services than banking services, especially in Asia. For the unbanked population, This trend presents a great opportunity for telcos and merchants as DCB enables consumers to make digital purchases without the need for credit or even a a bank account.

To start off on the right footing with DCB, you need a partner with a proven track record of enabling both telcos and merchants to get the best from this technology. Get in touch with Apigate to see our monetisation solutions and business-minded approach can help drive your business further with DCB.