The annual number of purchases made on mobile handsets and tablets are expected to reach 53 billion by 2016 from 27 billion in 2013, says Juniper Research.
About 80 per cent of these purchases would be accounted for by digital content and mobile ticketing solutions. Transaction volumes would grow significantly as an increasing number of over the top storefronts introduce direct carrier billing solutions to supplement credit/debit card payment facilities. According to the research firm, the storefronts that implement direct carrier billing can monetise younger demographics and unbanked users for the first time. In fact, storefronts which have introduced direct carrier billing have witnessed significant in purchase frequency of users and the average transaction value. The trend is particularly pronounced in developing markets. For example, in Indonesia, carrier billing now accounts for 83 per cent of all transactions.
However, despite the opportunity afforded by carrier billing, network operators – particularly in Europe are lagging behind in the adoption of carrier billing. The major concern is regarding bill shock that consumers may experience.
Going forward, retail spend using mobile handsets and tablets is expected to reach $700 billion by 2018, representing 30 per cent of all eRetail sales. Given the increased transition to a multiscreen environment, storefronts should ensure that their billing platform enables carrier billing via PCs and TVs.
