This growth is seen in multiple telco partnerships initiated in industry segments like gaming, social networks or streaming. According to Juniper Research, the value of digital content transactions paid for by carrier billing is expected to reach USD 47 billion by 2020, more than 4 times the amount of under USD 11.3 billion in 2015. Other segments, such as transportation or ticketing, are able to leverage the capabilities ofDCB due to improvements of commercial and technical capabilities of telcos (see the latest partnership between EasyPark andFortumo, which aim to allow Slovenian drivers to charge parking fees to their mobile phone bill).
From a regulatory perspective (PSD2 and GDPR), merchants using DCB had a lot to gain during the past years as carrier billing is the payment method which requires the least amount of consumer data for processing transactions. DCB ensures a friendly payment user experience: there is no need to sign in or create additional accounts to pay, nor share personal data online. Under PSD2, single DCB transactions are capped to a maximum of EUR 50 per transaction, with a monthly limit of EUR 300. The PSD2 will continue to allow electronic money institutions to extend the scope of DCB from digital content to the purchase of physical goods.
Europe
Opportunities and innovation
As the majority of potential gamers are located in mobile-first emerging markets and credit cards are not popular or suited for this type of consumers, DCB is a better solution, being by default available to any mobile phone owner, whether they are playing on their mobile,PC or on a console. DCB is deployed by many game developers and is among the most popular alternative payment methods for digital gaming. Moreover, mobile gaming accounts for over half of the gaming market, generating new opportunities for DCB providers.
This editorial was first published in our Payment Methods Report 2019 – Innovations in the Way We Pay, which provides a comprehensive overview of the up-to-the-minute trends, updates, and innovations in the payments space worldwide, depicting the key developments in the way people pay.
The Paypers is the Netherlands-based leading independent source of news and intelligence for professionals in the global payment and ecommerce community. Our products address ecommerce, payments, Fintech and fraud management professionals, as well as merchants, payment services providers, payment processors, merchant acquirers, banks, financial institutions, start-ups and technology vendors. We have a special focus on major trends and developments in payments-related industries, such as payment solutions & services/digital payments, digital commerce, payments infrastructure (innovation) fraud and risk management, laws, regulations and compliance, banking and fintech (banking innovation), regtech, finance, mergers & acquisitions and venture capital.
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