The Paypers

According to the press release, the study anticipates that the increasing shift to subscription-based monetisation models for digital services such as games, video streaming, and music, will be key to the market realising a substantial growth rate of 172% over the next 5 years.

Therefore, the study – called Direct Carrier Billing: Market Outlook, Emerging Opportunities & Forecasts 2020-2025 – argued that convenience of combining monthly subscription costs into a user’s monthly mobile subscription will be a key growth driver for carrier billing over the next 5 years. The report recommends that carrier billing vendors should focus on expanding their partnerships with digital service providers, thus enabling consumers to pay via carrier billing, while capitalising on the growing trend of monetisation via subscription.

Moreover, the study identified emerging opportunities for carrier billing vendors in North America. The research highlighted high smartphone penetration and accessibility of same-day delivery services as key driving forces behind a growth to USD 600 billion of end-user spend on physical goods over carrier billing by 2025.

However, the research warns that vendors will need to re-evaluate their monetisation models to compete with established payment methods, such as credit cards and digital wallets. Consequently, to make carrier billing a more appealing payment method, the study urges these players to reduce their charge rates and align themselves with established payment methods.

Mobile operators to benefit from USD 100 bln direct carrier billing spend by 2025