Direct Carrier Billing Market By Technology Advancement, Growth and Forecasts 2021
- ehteshampeerzade
- Feb 17, 2021
- 3 min read
Market Highlights
Direct carrier billing is a mobile payment method that bills purchases from third-party vendors of digital products on the user’s monthly phone bill. It offers consumers, merchants, and mobile network operators, a whole host of opportunities within the payment industry. This service has become increasingly popular among consumers completing transactions globally because of its simplicity, security, and accessibility. Direct carrier billing lets wireless subscribers place the cost of purchase for a digital good on their monthly phone bill. It is especially useful for people who lack access to the basic financial services, such as consumers in the developing markets or younger consumers without bank or credit accounts.
DCB is gaining momentum across different digital platform right from on-demand content to e-commerce. Over the years, DCB has witnessed significant expansion in applicability. The technology is currently used in purchasing products and services through multiple modes, which include smart TVs, gaming consoles, smartphones, and computers. Unlike other mobile payment methods such as NFC solutions and mobile wallets, direct carrier billing does not require a banking infrastructure to process transaction. Its user-friendly attributes are driving the popularity among the masses, especially is developing countries.
Services providers are focusing on making DCB more dynamic by in allowing third party platforms to connect with random Mobile Network Operators (MNO) using a single interface. DCB holds tremendous potentials and technology companies are expected leverage the technology in the forthcoming years. For instance, Microsoft and Google has already initiated direct carrier billing in many of the markets they operate in.
DCB has high usability for individuals who are unable to effectively access traditional banking services. This is more notable for the developing world where banking sector remains in a poor status. There has been a significant rise in smartphone users across the global, which creating attractive market opportunities. On the flipside, factor such as complicated taxation laws and lack of effective policies in developing countries somewhat undermine the market prospects.
Segmentation:
The segmental analysis of the direct carrier billing market trends have been conducted on the basis of component, feature, type, authentication type and platform.
On the basis of component, the market has been segmented into services, software and hardware. The services segment covers managed and profession services. On the basis of feature, the market has been segmented into mobile originated & mobile terminated, PIN defined, pre-defined window and others. On the basis of type, the market has been segmented into PIN or MO Base Window, MSISDN Forwarding, Limited DCB, Pure DCB and others. On the basis of authentication type, the market has been segmented into two-factor authentication and single-factor authentication. On the basis of platform, the market has been segmented into iOS, Android and Windows.
Regional Analysis:
The global market for direct carrier billing is estimated to grow at a significant rate during the forecast period from 2018 to 2023. The geographical analysis of direct carrier billing market is covered for the regions such as North America, Europe, Asia Pacific, and rest of the world. Direct carrier billing companies make most of their money in developed markets like North America and Europe. The market for DCB in Europe is expected to grow due to the initiatives taken by the government. Payments across Europe are regulated by the Payments Services Directive (PSD) 2007, which is designed to increase pan-European competition and participation in the payments industry from non-banks. The new regulation is standardizing and improving payment efficiency across the EU FinTech industry while promoting innovation and competition between banks and new payment service providers. Asia Pacific is expected to grow at significant pace during the forecast period due to higher smartphone penetration due to a population explosion in the region. Due to rise in the number of smartphones users, traditional payment methods are lagging behind. The market for direct carrier billing has great potential in emerging markets like India, where mobile penetration is high, however, hundreds of millions of people lack credit cards or bank accounts.
Competitive Dashboard:
Some of the leading companies discussed in MRFR’s report include Bango, Singtel, T-Mobile, DIMOCO, Orange, NTT DoCoMo, Bell Canada, Telenor, Swisscom, AT&T, Boku, and Fortumo. Many market players are engaging in product innovation by investing in research and development activities. Players are striving the achieve a higher feat by introducing innovative products with low-cost offerings. Also, mergers and acquisitions have emerge as a prominent industry trend as companies look to consolidate their market position by adoption such strategies.
Comments