Businesses are finally beginning to realise the many benefits of direct carrier billing (DCB) and how it is ideal for a growing number of services being made accessible from the mobile phone, from dating to parking, transport and even education.
Digital content and services are leading the payment revolution. According to Juniper Research, the total value of digital content paid for via DCB in 2018 was USD 27.7 billion worldwide, 38% higher than 2017. It also forecasts that DCB revenues will grow by a CAGR of 20.2% from 2019 to 2023. The ongoing pandemic only serves to speed up this trend as people are increasingly adopting contactless payment options today.
According to Juniper Research, these are the top 5 segments that consumers are paying for with DCB and their potential for further growth.
Revenue from digital games billed through DCB is expected to have an average y-o-y growth of 16.2%. Total value of games billed through DCB in 2017 was around USD 11.6 billion and this is projected to rise to USD 30.1 billion in 2022.
- Video Content
Video content is expected to garner the highest annual increase amongst digital content players. Total value of video content billed through DCB in 2017 was around USD 2.4 billion and this is expected to increase to USD 10.9 billion in 2022.
Music revenue will increase at average of 22% y-o-y. Total value of music purchased through DCB was around USD 988 million in 2017 and this is expected to increase to USD 3.1 billion in 2022.
While many hold the view that mainstream media is on the way out, there are several case studies of media houses successfully transitioning to digital platforms. As such, there is still a lot of potential for e-Publishing. E-Publishing products charged to DCB worldwide is expected to see an annual average increase of 32%, with revenues in 2017 reaching USD 593.7 million and expected to rise to around USD 5.1 billion in 2022.
- Lifestyle services
With the explosion of lifestyle app publishers, such as sports, dating, weather, lottery results, and countless more, DCB billing for lifestyle services is expected to follow a similar rising trend. Total value of lifestyle content invoiced via DCB in 2017 was around USD 2.1 billion and is projected to rise to around USD 6.1 billion in 2022.
The unparalleled ease of use of DCB has the great potential to drive the mobile economy to the next level. This is because with DCB, users do not have to exit to another app or screen to complete a payment. There is also no need to take out their card and enter the details or fill out personal data.
Emerging markets expected to lead this growth in DCB adoption. In Asia-Pacific, it is estimated that the DCB market will experience growth at a CAGR of 14.52% between 2019 and 2028. A major reason for this explosion is high penetration of mobile phones in the region. Another reason is that developing countries generally have a population with more unbanked people. DCB enables consumers to purchase and enjoy digital content without needing to pay through a bank or credit card.
The large potential of presents businesses and content publishers with a great opportunity to tap into new markets. To start off on the right footing with DCB, you need a partner with a proven track record. Get in touch with Apigate to see our monetisation solutions and business-minded approach can help drive your business further with DCB.