Direct Carrier Billing
Direct Carrier Billing has become more widely adopted for in-app payments than its given credit for or maybe even thought about.
It is a mobile payment method that bills purchases from third party vendors of digital products.
How carrier billing works?
Carrier billing typically uses a two-factor authentication method. The user enters his mobile number and receives a one-time password via text message to complete credentials. This eliminates even friendly fraud (like someone who knows you uses your number) as the buyer must have the device in-hand to complete the purchase.
Is it DCB a good Business?
In 2012 alone content revenue from direct carrier billing exceeded $2.3 billion mainly via smartphones. This is no surprise for the industry when we know that carrier billing provides a better user experience for mobile phone and unbanked users and on top of that the increase in smartphone shipments to retailers worldwide has definitely helped to drive this success.
Direct Carrier billing provides several very important advantages over the competitors offerings, with low friction purchases being the most notable benefit from an application stores perspective (thereby increasing ‘in-app’ conversion rates), while also being accessible to customers who do not have credit or debit cards.
Direct Carrier billing (also known as Direct Billing) brings together the advantages of Premium SMS (being available to all mobile phone users) with the advantages of debit/credit card payment (reliable, easy audit trail, no charge backs) while also providing a low-friction purchase environment (no forms!!).
On “second-screens” (mobile phones, tablets and Internet-enabled TVs), simplifying checkout is critical. With 50% of Android apps using in-app billing, leveraging carrier billing makes sense for many developers and sellers of digital products.
What do we think about?
If mobile operators can continue to reduce their share on the transaction, the future of direct billing looks very bright indeed.
Optare has a DCB Demo environment ready to show from the Operator point of view. Lets see some details
- Demo of Direct Carrier Billing (DCB) using Oracle Communications Services Gatekeeper 5.1 as Payment Gateway.
- Operative Lab integrated with SMS Platform, Authorization Server (OAuth 2.0) and Mobile Application as interface.
- The payment from the mobile application can be executed using 2 types of validation:
- A security code generated by the operator and sent by SMS
- Redirection to an Authorization Server for the acquisition of a valid token (OAuth 2.0)
- Once the validations are passed, a payment order is generated and sent to the OCS (Online Charging System) using Diameter.
“In 2012 alone content revenue from direct carrier billing exceeded $2.3 billion mainly via smartphones”
Optare has a DCB Demo environment ready to show from the Operator point of view. Contact us for more information.