Up Next for PSPs: Carrier Billing, the Alternative Payment Method
In an ever-changing market, price and service quality have always been at the forefront of the consumer experience, but now the balance has shifted towards convenience. Consumers are engaging with services based on the ease of completing purchases in a frictionless manner from the comfort of their homes. Whether it’s donating to charity or watching pay-per-view sport on demand, being able to complete a purchase with just a couple of taps via mobile has become normal behaviour to a vast number of consumers.
The dramatic rise in online purchases is attributed to the increasing availability of efficient payment methods, for which a quick and easy route to services has become fundamental.
Consumers are familiar with PayPal, Apple Pay, Google Pay, Samsung Pay and credit card as payment options, but leading the charge due its quick and secure nature, mobile carrier billing is fast becoming a preferred payment choice for many digital consumers. In fact, many are using mobile carrier billing without even realising it, due to there currently being no universal name for a mobile payment.
According to Juniper Research, the potential value of digital content in Europe via carrier billing is predicted to rise from just over 2.6 billion euros in 2015 to nearly 14 billion euros in 2020. This gives merchants a huge opportunity to generate more added value in digital content areas, such as ticketing, gaming and pay-per-view.
What is mobile carrier billing?
Carrier billing is a mobile payment method that allows users to purchase digital content and charge it to their mobile phone bills, or have the funds deducted from their pre-paid credit. The mobile payment option works with one-off purchases, recurring subscriptions and in-app payments.
What is the spending limit?
The current regulation stipulates a maximum spend of £40 per single transaction in the UK and €50 in Europe.
Why should PSPs adopt mobile carrier billing into their payment mix?
Adding innovative payment methods alongside traditional methods will help PSPs to drive additional revenue. Analysis has demonstrated that merchants who have incorporated mobile carrier billing into their payment flows have seen revenues increase, without cannibalising existing revenue streams.
What are the benefits of offering direct carrier billing payments for merchants?
Mobile carrier billing is a frictionless payment mechanic, which does not require entering card or billing information in order to complete a purchase, providing a quick and seamless checkout experience.
Mobile carrier billing is an attractive option for new customers who want to interact with or purchase a service without committing to providing in depth account information to facilitate an initial purchase.
As payments can be initiated and completed in just a few clicks, Fonix’s clients have seen up to 45% higher conversion rates, and significant incremental revenue growth compared to traditional payment methods.
What needs to be on the radar for PSPs?
With an increasing number of customers expecting quick and frictionless payment options, now is the time to add mobile carrier billing into the payment mix and increase revenues for your merchants.