New Mobile Driven Society
The pandemic has accelerated the use of mobile payments and the overall consolidation of a cashless society. Moreover, online purchases are increasingly being performed on a mobile device. A new study from Juniper Research has found that mCommerce payments will reach $3.1 trillion in 2025, up from $2.1 trillion in 2020. According to these data, we can say that we are in front of a mobile driven society where users demand immediacy and convenience when making their payments.
For this new mobile economy, Direct Carrier Billing is a payment method with huge potential. It allows users to pay for digital services as part of their monthly bill, offering them an enriched purchasing experience. DCB enables a fast, easy and secure online payment flow and spares users from sharing their personal data or bank details online. For these reasons, it provides a great opportunity for Telcos to increase their revenues and for Merchants to achieve higher conversion rates.
Direct Carrier Billing: Growth Forecasts
Covid-19 has also amplified the shift to Carrier Billing across many markets. This situation, added to its advantages, is making the DCB market growth forecast higher than the one published by Omdia at the beginning of the year (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…Want to discover all these Mobile Payment trends? Read our recent article!
