CARRIER BILLING
Carrier billing: safe and smart
Charlotte Newby, DIMOCO’s Head of Corporate Communications, explains why carrier billing is a safe (and smart) wager for the gaming industry
I
n 2015, the value of mobile and online physical, virtualised and digital goods sales in Europe passed the ¤500 billion mark for the first time, reaching ¤570 billion, according to Juniper Research. Overwhelmingly, the momentum for
growth comes from the mobile (smartphone and tablet) sphere with these devices becoming primary mechanisms for the access, payment and – for digital goods – the delivery of services. The online gambling world is no different. When
Paddy Power Betfair reported its interim figures for the first half of 2016 in late August, over three- quarters of all sportsbook revenues came via the mobile. Overall, the number of mobile gamblers will exceed the 100 million mark by 2018, according to
yStats.com. The pure telco payment method of carrier billing is
one key reason why the gambling digital content market, like other segments, will keep growing. Simply put, carrier billing will play a major role in development of the gaming sector for years to come. Carrier billing accounts for a still negligible
proportion of European online casino wager of just under ¤112 billion in 2016 (rising to ¤165 billion by 2021). But it is likely to increase in popularity among casual players of slot-style gaming, eclipsing ¤100 million in annual deposits by the end of the forecast period.
The array of advantages for all stakeholders
The advantages for the iGaming industry are
evident and multilayered for all involved parties, whether consumer, merchant or mobile network operators. This payment option brings significant opportunity to service providers. It provides direct connectivity to the billing platforms of the major telecoms network and offers unmatched convenience
74 MAY 2017
and customer satisfaction compared to traditional payment methods, such as credit or debit cards. For consumers, carrier billing delivers a clear
overview of charges on their monthly carrier bill or are directly deducted from their prepaid SIM card. The service’s fast track registration, with no previous registration needed, allows a spontaneous and one- tap payment. In addition, with security features like PIN entry, it is a very secure payment method. When it comes to merchants, the seamless and time-friendly payment experience boosts the conversion rates. It’s penetration rate is also reassuring for sellers. Carrier billing is backed by an almost total billing reach. In fact, the mobile coverage in every EU country is more than 100 percent, as, in some markets, nearly every second person has two phones with separate mobile numbers. While sellers tend to see carrier billing as only a
payment method, there is a gold mine of information behind each phone number that can be utilized for marketing purposes and possible marketing cooperation between mobile network operators and merchants to distinguish an additional array of marketing opportunities. Beyond those valuable elements, capped
transaction amounts are particularly useful in the gambling industry. Limits per transaction or monthly caps give consumers a sometimes-needed safety net that is sometimes valuable, considering the preconceived notions that come with the gaming business.
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