Direct Operator Billing (DOB) will boost frequency & value
The annual number of purchases made on mobile handsets and tablets is expected to reach 53 billion by 2016, according to a new report from Juniper Research. That’s almost double the 27 billion made last year. Significantly, the majority of these purchases (around 80 per cent) would be accounted for by digital content and mobile ticketing solutions. Transaction volumes would receive a significant uplift as an increasing number of OTT [Over The Top] storefronts introduced direct carrier billing solutions to supplement credit/debit card payment facilities.
The report, entitled ‘Mobile Payment for Digital & Physical Goods: Opportunities & Forecast 2014-2018‘ found that storefronts which had already introduced Direct Operator Billing [DOB] had already seen a sharp rise in paying users; purchase frequency; and average transaction value.
Despite the opportunity afforded by DOB, a number of MNOs [Mobile Network Operators]- particularly in Europe, remain wary of implementation.
“These concerns revolve primarily around any fall-out from bill shock,” said report author, Dr Windsor Holden.
“Given the ease of purchase from carrier billing, consumers might argue that bills were run up inadvertently, or that their children had borrowed their handset and made the purchases,” he continued. ”
The fear is that customer services departments could be swamped.”
In developing markets, such as Indonesia, DOB now accounts for 83 per cent of all transactions.
Storefronts that implement DOB can monetise younger demographics and unbanked users for the first time.
The whitepaper entitled ‘Retail in the Palm of Your Hand’ is available fro free from here.