Following our CEO’s article on Mobile payments revolution featured on MEF Minute, we continue the focus on carrier billing, one of the fastest growing mobile payment methods, with an overview of its key features and great market opportunity it offers
The smartphones are the icons of the 21st century, profoundly impacting the global economy. They continue to conquer the worldwide mobile markets much faster than predicted, with 25% growth in 2014. Moreover, 9 countries will surpass 50% smartphone penetration this year, according to the latest eMarketer research.
The connected devices provide more access to quality content and multimedia, like apps and games, and also the plethora of digital goods, that complete the browsing, gaming or social experience. The smartphones and tablets are not only the viewing devices: same device providing online experience is the one that can be used for micropayments, charging the sum directly on the user’s phone bill, avoiding the credit cards or bank accounts data.
Let’s take a closer look at some of the key features of Carrier billing.
Carrier billing: the great business opportunity
One of the key advantages of carrier billing is the market it is addressing: close to 7 billion mobile phone users, compared to 2,5 billion credit card owners or, for example, 500 million iTunes accounts. It is becoming popular in both emerging and developing markets, since it offers the safest and fastest way for completing a digital purchase.
Several other important trends will surely contribute to wide adoption of carrier billing. Mobile is becoming crucial for the future of online retail, as the e-commerce rapidly turns to mobile. Combined with the right advertising and payment method it is a “win win” situation for both digital merchants and operators.
According to the latest estimates by Business Insider, carrier billing will power $4 billion in mobile transactions in 2014, or 13% of the global market for mobile digital content. In 2017, it will up this share to 22%, for $13 billion in mobile transactions, increasing its part of the market share, dominated today by the credit card purchases on the main app stores, Google Play and Apple’s App Store. Google is also recognizing the immense potential of this payment method, and it recently launched carrier billing payment for apps and digital content on the Google Play Store.
The Carrier billing ecosystem
One simple overview of the main players of today’s global mobile market is enough to understand the great business opportunity that lies within the carrier billing. The ecosystem is created by 3 key players:
- merchants and app developers offering digital products and services
- mobile monetization enablers, such as Neomobile, allowing the monetization of these products and services via direct carrier billing
- and MNO with the subscriber data base
Neomobile is positioned in the very core of this ecosystem, with years of cumulated experience in and Android oriented platform, guaranteeing the best results for its partners.
Find out all about the best way to monetize on mobile!