The Future is Now: Carrier Billing on the Rise
With the rapid evolution of mobile devices, people desire new ways for an effective use of such technology. Mobile payment, as a new financial service is slowly gaining a strong position on the market.
Today, 50.3% of e-commerce traffic comes from mobile. (In 2013, mobile traffic was only 20%.)
So more than half of online consumers are making their purchases on the phone or a tablet now.
Every merchant should focus on finding the most efficient method of mobile billing. And they should put it on the top of their priorities.
The rise of carrier billing
Direct carrier billing is slowly taking over credit card payments and even SMS billing (which was still popular few years ago). Mobile is becoming the key to the expansion of various business sectors – and not only those selling services and offering subscriptions. Even companies working with physical products can take advantage of carrier billing as a method that is gaining popularity.
Advantages of carrier billing
Due to many frauds and stolen credit cards details, people don’t always trust websites that offer only this method of payment. When using mobile, customers are looking for safe way to purchase something without the risk of becoming a victim of a fraud or a scam.
Carrier billing offers a safe and trustable way of payment for most of the users.
Filling in credit card details, especially on mobile, is pretty time consuming. We live in an era where every second counts and customers are looking not only for safe but also a fast way of payment. Direct carrier billing provides very simple payment flow. It offers a frictionless payment experience. This is exceptionally important on a device with a short attention span, such as mobile, thus naturally generating the highest conversion rates.
This billing option is greatly successful in many geographical areas. There are still challenges ahead, though. It’s not yet ideal for converting Wi-Fi traffic. For now, it only works through 3G/4G connections. More and more operators worldwide are beginning to provide carrier billing. Consumers and merchants start to further recognize the convenience, safety, and efficiency of carrier billing. Soon, we will see a significant increase in its global adoption.
Carrier billing VS SMS billing
Until recently, premium rate SMS have been the main method of payment for mobile content. But nowadays, it is quickly losing market share to carrier billing due to a number of disadvantages related to ease of use and fluidity of the payment process. From a merchant standpoint, what makes it weak are multiple transaction fees, lack of flexibility with price points, and a high revenue share cut by mobile operators.
Carrier billing VS credit card payment
And although credit card payments are still highly prevalent and often the only billing option available to monetize mobile users, the disadvantages to their use are larger than any other form of mobile billing. The simple fact is that entering lengthy credit card information on a mobile keyboard is a real hassle for users. Especially in an effort to access desired product/service on the mobile, standard credit card billing is certainly not the most efficient solution and generates much lower conversion rates compared to other mobile payments.
What’s the future of mobile payments?
The way consumers are accessing the web is changing rapidly. Nowadays, for the first time in history, more than 50% of traffic comes from mobile devices. Attention span is short and mobile users need to be served quickly. They want accurate and tailored-made information. They want options in their purchases. They want a fast and secure way of payment. And they want it yesterday.
In the upcoming years, many businesses in various industries will have to adapt their financial services and join the technological revolution. Otherwise, they’re risking to be left behind and lose a substantial portion of their customers.
Many companies are already offering carrier billing to their customers, and the number of these businesses is increasing every year.
Is carrier billing just another invention produced by IT companies to take over a big junk of the market or is it a firm step towards a cashless society of the future?
And did you know that clickBakers has a mobile carrier targeting with an accurate and exclusive database of IP ranges from mobile operators worldwide? We can track mobile traffic in a very effective way and help you with mobile targeting based on the carrier. This can be very useful for specific campaigns and is especially beneficial for the offers that involve carrier billings.
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