The headline is pretty eye catching, and lets the world in on a secret that the team here at Boku has known for quite some time: direct carrier billing is “the world’s most popular mobile payment.”
The term “mobile payment” has been something of a catch-all in our industry for quite some time, lumping together everything from Premium SMS, to Square, to Google Wallet. The opacity of that term has quietly obscured the hidden gem of the “mobile payments” industry, direct carrier billing, something that Boku has worked on for 4 years to expand into a global payments powerhouse. Recently, Mobile Payments Today and AmDocs came together to dig into direct carrier billing, providing insight into the true reach and power of the technology, and distilling their insights into the handy infographic below.
Some key findings:
- Over 95% of the world’s population has some form of a mobile phone account, compared to just 49% with a bank account and 30% with a credit card. The significance of this finding directly relates to the market opportunity for direct carrier billing. With more transactions taking place electronically across the globe every day, potential consumers who are unbanked and do not have a credit card are completely left out of the online marketplace – direct carrier billing solves this problem and enables those consumers.
- By 2014, there will be more mobile phones on the planet than people.
- Direct carrier billing is quickly spreading outside of digital content and spilling over into the “real world”, creating massive market potential in developed and developing markets alike, particularly for small ticket items (in the developed world), and POS and e-commerce (in developing markets).
- Direct carrier billing conversion rates are 5X higher than credit cards due, in no small part, to the ease of use for DCB. When a consumer only needs to enter a phone number in order to complete a payment, the full payments process takes significantly less time than entering a name, CC number, address, CVV number, etc. This leads to higher conversion rates and increased revenue for merchants.
- Based on app store transactions alone, the DCB market is expected to reach $11B by 2016, and grow to $13B by 2017
- In the “Innovative uses of Direct Carrier Billing” section, Mobile Payments Today and AmDocs specifically call out Playstation’s addition of direct carrier billing to their Playstation Store – powered by Boku.
Check out the full infographic below.