Did you know that for many people in the world, it is easier to get a cellphone signal than banking service?
There are over 6 billion smartphone subscriptions worldwide today and this number is expected to grow to over 7.5 billion by 2026. In tandem with this trend, some experts expect the global market revenue of Direct Carrier Billing (DCB) to rise from around USD 20 billion in 2019 to about USD 36 billion in 2025, with a CAGR of 10.35%
In this mobile-dominant scenario companies need to have a business strategy that leverages on mobile or risk being left behind. A critical part of that strategy is having the right digital payment platform, as it forms a crucial part of the overall user experience.
Typically, users will have to disrupt their experience on the platform so that they can go through the payment process via bank or card. Or else, they have to provide sensitive personal information to authorise third parties to process their payments. Neither of these solutions are ideal because it interrupts the seamless user experience and could cause anxiety about security and privacy.
However, DCB elegantly addresses all these hurdles. Yet, it is still the underdog in the digital payments industry. All that could be changing in the very near future as more and more merchants and users start to realize the immense benefits they can gain from DCB. Apigate has helped several merchants and telcos realise these benefits which have resulted in significant boost in business.
Here are 3 critical reasons why DCB is the most suitable payment model compared to other methods in the rising tide of mobile commerce.
1. Charge a user in just one click
DCB lets any mobile phone user pay only for their purchases without having to exit the platform that they are making the purchase from or giving away sensitive information to multiple third parties. Purchases are simply charged to the users’ phone bill.
Some may think that certain e-commerce platforms have such one-click convenience by automatically charging their credit or debit card during checkout. But users typically have to register for that convenience by providing their financial and personal data to the e-commerce platform, which incurs risks of leaked data. DCB reduces that risk significantly as telcos typically have very robust security systems and mobile operate within a highly regulated environment.
2. Able to operate regardless of device
DCB can work on phones, computers, tablets, Smart TVs and even feature phones. The extremely simple experience makes for a much smoother checkout experience compared to all other payment methods today. DCB can also easily accommodate different payment types, such as micro-transactions, recurring payments, and bundles, which makes it perfect for casual spending.
In the digital economy, this ability to monetise contents and services through any device is a critical factor of success as it provides unparalleled convenience. Simplifying the purchasing process for the consumer also makes it the only payment solution suited for impulse purchases as it reduces the time users have to reconsider their purchases.
3. Simpler checkout flow results in higher conversion rates
The pandemic has led to a rising trend of online purchases globally, as people turn to e-commerce to purchase their entertainment and even daily needs during lockdowns. This is driving new habits of consumption, especially for digital content such as games and streaming services. In fact, with the right strategies, DCB could be a powerful acquisition tool.
DCB as a powerful monetization strategy in the digital economy, especially for digital content and services. Its simplicity and immediacy, especially for micro-payments and impulse purchases, makes it the ideal mobile payment method to boost revenue growth. The fewer hoops users have to go through to get their purchase, the more likely they will stay and spend some more.
As such, DCB could serve as much more than just a payment option. It can be a seamless user onboarding mechanism, allowing users stay on the platform and spend without setting up an account, registering a credit card, and share sensitive information like bank details.
At Apigate, we have a deep understanding of the digital content and services’ landscape. Our business strategies and technology solutions have enabled over 100 digital partners (globally recognized entertainment & gaming OTTs, app stores and others) to gain access to over 1 billion consumers across the globe through mobile operators, e-wallet providers, e-marketplaces and more.
Contact us to find out how we can help you enable DCB for your revenue growth.