Telefónica, a leading telecommunications operator in Europe and Latin America with brands such as Vivo and Movistar, is developing direct carrier billing (DCB) in partnership with DOCOMO Digital, the world’s preeminent mobile commerce enabler, to accelerate the adoption of content and digital services among its subscribers in Latin America.
Direct carrier billing is an increasingly popular mode of payment for digital services in advanced and emerging markets alike, as it allows faster and frictionless transactions in App stores such as Apple iOS and Google Play while providing better transparency and control over purchases for subscribers. The service is especially gaining traction in emerging markets such as those in Latin America.
DOCOMO Digital’s own research suggests that there is a huge opportunity in LatAm for digital services, marking out the country as one of the fastest growing markets in the world.
According to the latest reports, nearly half of the entire Latin American population is unbanked, and only 113 million people in the region out of a total population of 625 million are reported to have credit cards. With more than 174 million unique mobile subscribers across the region, direct carrier billing will allow millions of Telefónica customers to consume digital services securely with their mobile phones.
The state-of-the-art DOCOMO Digital platform would allow Telefónica’s operating businesses across Latin America to offer clients an easy way to pay for services from digital merchants and app stores. New regulation around the word will also make possible soon to use carrier billing in segments that have traditionally not used it before as a payment method such as public transportation services or ticketing providers.
Beyond the ease of direct carrier billing, the platform offers scale, end-to-end subscription lifecycle management, sophisticated fraud prevention, and advanced analytics suite. Subscribers will have complete control over transactions while merchants will be able to manage their entire portfolio of transactions with Telefónica’s customers. Movistar Chile has been the first country in Latin America to go live on this new payment platform with all new functionalities. In the short time will follow other countries where Telefónica operates.
“Telefónica is focused to give new opportunities to our customers to access to the best digital experience. All of this supported it by our open, simple, secure and transparent digital ecosystem. Our aim is to make easier for our customers to enjoy digital content while giving them more control over their transactions,” says Fabio Bruggioni, Digital Platforms Director at Telefónica.
Telefónica and DOCOMO Digital are developing new capabilities for removing friction in commerce transactions for mobile subscribers. Both companies see an opportunity to expand the carrier billing like this new way of making digital payments.
“For DOCOMO Digital, our state-of-the-art platform is purpose-built to make integrations with app stores such as Apple Store and Google Play happen for our telco partners quickly and reliably. We have been working closely with Telefónica in Europe for a number of years and it is truly gratifying to see our partnership grow to another level now in the Latin America region.”, said Dheeraj Soni, President of DOCOMO Digital’s Payments business.