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INTERVIEW Billing trends: Where DCB fits in to the billing landscape with Tim Duncalf


In the second part of our series looking at key telemedia topics, Tim Duncalf, sales director, Telecom2, talks about where DCB is heading and how it fits in with the other digital billing tools on the market






TELEMDIA NEWS: How has the pandemic impacted direct carrier billing?

Tim Duncalf, sales director, Telecom2: While many markets have been negatively impacted by the pandemic, DCB seems to be one of the few that may be able to thank Covid-19 for its success. The reason for this is twofold: the payment method was already seeing an increase in popularity, and consumer behaviour has changed as a result of lockdowns. Juniper Research has predicted that it will account for more than 1 in 5 digital content sales by 2024. Combine this with the fact that digital consumption has risen by 30% over the Covid-19 pandemic, creating new consumer behaviour patterns, we can see how this is a booming industry.

TN: Will DCB be surpassed by other billing methods (such as bank transfer, third-party payments apps etc)?

TD: Carrier billing definitely has its pitfalls, which impacts its effectiveness. PSD2 has introduced strict limits on how much a consumer can spend over a given period and the mobile networks – as the contracted party – manage this. Due to the nature of the beast, MNOs also take a high cut and, until the networks can treat the content owners as merchants and come more inline with other payment mechanisms, the risk of being surpassed by other billing methods remains . While these are definite cons, it has benefits over other payment methods, predominantly in the form of reach. It’s a global phenomenon and, while regulations vary from country to country, it offers a payment solution that’s accessible to the vast majority of the general public.

TN: Which industries could make the most of the DCB boom?

TD: If we look at current trends, almost all shopping that was able to be transferred from in-person to online has made that shift. While we’re likely to see many reverting back to more traditional shopping behaviours, it’s highly likely that there will be a permanent preference for e-commerce. In this respect, all online industries could make use of the convenient payment method – consumers are shopping using their mobiles, so why not enable them to pay with the same device? That being said, content is definitely king. Content driven services have seen an overwhelming growth, with a 60% increase in the amount of video content watched globally. Any online business that uses small and micro payments for either subscription or single purchases that can be utilised for wallet based top-ups, are ideal candidates for direct carrier billing.

TN: How is Telecom2 getting involved?

We’ve recently expanded our payment gateway, SecureMT, to include carrier billing on top of credit cards. This offering covers one-off payments as well as subscriptions.

Have more questions about direct carrier billing or SecureMT? Contact Tim via tim.duncalf@telecom2.net or visitwww.telecom2.net


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