Research unveiled at Mobile World Congress has shown that carrier billing allows vendors to profit from 60% higher conversion rates for first time transactions and 70% higher conversion rates for second transactions compared with credit card billing. And 75% of European users prefer carrier billing if the payment option is available for digital content purchases.
So finds research carried out by Juniper Research and DIMOCO, which suggests that this popularity is going to see revenue from digital content billed via carrier billing rise to €9.8 billion in Europe in 2019.
According to Gerald Tauchner, DIMOCO’s CEO, speaking at the Mobile World Congress 2015: “Carrier billing is the number one payment method when it comes to billing digital content.”
The market analyst Juniper Research and the European Carrier Billing company DIMOCO presented “The Future of Carrier Billing in Europe” at the DIMOCO Mobile World Congress 2015 exhibition booth. While Windsor Holden, Research Director at Juniper Research, presented the latest digital content market data and the forecast for the coming years; DIMOCO heralded brand new carrier billing market trends and how vendors will profit from this enormous potential.
Accoridng to the study, carrier billing is an essential, additional payment method, providing content vendors with the opportunity to monetize consumers who do not own a debit or credit card, or even have a bank account, whilst utilizing pre-existing, trusted billing relationships even when no data was provided by these customers and personal information is never seen by the retailer.
Historically used only to bill content acquired on mobile phones, carrier billing now embraces content delivered to devices such as tablets, desktop PCs and smart TVs, greatly expanding the scope and scale of potential revenue for all vendors.
But it is conversion rates where carrier billing really comes into its own. First-time conversion rates with carrier billing 70%, compared to 10-12% with credit cards. The uplift is particularly pronounced for small value transactions (less than 10EUR). For repeat purchases the conversion rate with Carrier Billing was 80-88%, while with Credit Card Billing it was 20-25%.
And consumers love it. 75% of European users prefer Carrier Billing if the payment option is available in digital content storefronts.