A new study from Juniper Research has found that digital commerce spending will rise to over $11.6 trillion by the end of 2021, from $10.5 trillion last year; a growth of 11.5% in a single year. This spend encompasses money transfer, digital goods purchases, physical goods purchases, digital ticketing purchases, banking bill payments, NFC mobile retail payments and QR code retail payments. The research found that the success of digital solutions during the pandemic means that consumer behavior will become increasingly digitally led, rather than reverting to pre-pandemic norms.
The new research has revealed that mobile commerce will account for 73% of all digital commerce transactions by value in 2021; rising to 79% by 2025. Mobile has emerged as the most important way to access services, and although online will remain relevant for higher-value transactions, user experiences must be mobile first.
Carrier Billing as the most suitable payment alternative
Direct Carrier Billing (DCB) allows users to pay for goods and services through their monthly mobile bill. It is a fast, simple and secure payment method that responds to today’s consumer habits.
Covid-19 has also amplified the shift to Carrier Billing across many markets (10% annual growth from $49 billion in 2019 to $79 billion in 2024).
Some of the advantages of this fast-growing payment method are:
- Security: DCB doesn’t require the user to enter personal data or bank account details.
- Simplicity: DCB reduces the purchase process to a single click, increasing conversion rates and providing users with frictionless purchasing experiences.
- Confidence: Users trust on their mobile operators as they already have an economical relationship with them.
- Convenience: DCB offers an enriched purchasing experience by mixing security, simplicity, confidence and convenience.
- Penetration: In the world there are more smartphones than credit cards. DCB allows people with less access to bank accounts or credit cards to take part on digital payments.
Apart from the pandemic situation, DCB is growing due to an increased demand for frictionless purchasing experiences, new consumer habits, younger demographics, PSD2 regulation, opportunities in emerging countries, 5G & new verticals…
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Read full Juniper Research article here