Although many still cling to their physical wallets, the mobile payments revolution has been rapidly taking over the world. Mobile payments trend is on the rise all over the globe. It reaches billions of people and reveals a potential to fully capture the unbanked and under-banked population. More and more consumers around the world are choosing speed and convenience by paying for goods and services via their mobile phones.
Mobile is the second most ubiquitous payment method after cash, meaning ease of use for consumers and access to an increased audience for merchants. It is expected to reach the seriously impressive number of £2.5 trillion by 2021, with revenues billed to direct carrier billing expected to grow to £3.9 billion only in 2017.
Types of mobile payments
Mobile payments can take many forms but we can roughly divide them into two groups: bank-based mobile payment solutions and non-bank based m-payment options. First group includes device initiated credit and debit transactions, digital wallet transactions and mobile points of sale (mPos). Second group consist of services as P2P transfers (widely known as mobile money) and Direct Carrier Billing.
Direct Carrier Billing
Although Western Europe is a region with high income and good access to bank-based payment services, many people still prefer to use alternative payment methods such as pay-by-mobile. This is illustrated by the fact that Direct Carrier Billing is among the top 3 payment methods for digital gaming in most of the western countries.
Carrier Billing method equips virtually everyone to pay for goods and services relying solely on their mobile phone. Its technology allows customers to make a purchase in a quick and simple one-click transaction. No signup or entering any sensitive information as personal or credit card data is required. The cost is then charged to the customers’ mobile phone bill, or taken from the available credit if they are on a pay-as-you-go tariff.
This payment solution has immense potential to open a business up to virtually limitless markets such those of the developing countries. A tremendous opportunity that is not to be missed. Especially now when some of the carrier billing providers manage to reduce their rates enough in order to compete head to head with credit cards.
Get to know how mobile payments can drive sales for your business by exploring different industry cases.