Deutsche Telekom generating ‘significant revenues’ from carrier billing
Mobile payments space is great opportunity for operators to diversify. It seems the operators still have some advantages over the never ending slew ofOTT players. The much vaunted billing relationship is paying off, according to DT.
- Damien Byrne, senior manager of international partnerships at Deutsche Telekom says “[Direct carrier billing is] making some significant revenues for us at the moment,”
Carrier billing is seen as a tried and trusted method of paying for both digital and physical commerce. The continued rise of online shopping is directly liked to financial trust and usability issues of the average customer.
- Carrier billing, through which customers can buy digital and sometimes physical goods via their device and have the cost added to their monthly phone bill or deducted from their prepaid credit, is popular with consumers, since it is easy to use and secure, Byrne said. It is also beneficial to merchants, because conversion rates can be five to six times higher than with other payment methods, he added.
Mr Byrne claims “”The value we have is…in minimizing the connections,”
- As it stands, the average transaction value is “relatively low” at around €4-€5, since users are mostly buying digital content from providers like Google Play, Byrne explained. However, going forward carrier billing will handle larger sums and will be more widely used in the physical goods market, once certain legal and regulatory issues have been ironed out.
- While PayPal has more than 150 million users globally and credit card users number 1.5 billion, there is an opportunity for mobile operators to reach 5.6 billion people, Byrne said, provided they are willing to work with partners.
Carrier billing makes a whole lot of sense, not the least for the carriers. Millicom was talking up financial services in a post just last month. Millicom is making the move into digital services with a big focus on mobile wallet and mobile payments (here).
Love ‘em or hate ‘em, it seems most of us are still happy to trust them with our credit card details.