Annual number of purchases made on mobile handsets and tablets is expected to reach 53 billion by 2016 from 27 billion last year, said Juniper Research.
Around 80 percent of these purchases 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.
Storefronts that implement direct carrier billing can monetize younger demographics and unbanked users for the first time. Storefronts which had already introduced direct carrier billing had already seen a sharp rise in paying users, purchase frequency and average transaction value. The trend is particularly pronounced in developing markets: in Indonesia, carrier billing now accounts for 83 percent of all transactions.
However, despite the opportunity afforded by carrier billing, network operators — particularly in Europe — remain wary of implementation.
These concerns revolve primarily around any fall-out from bill shock. Give 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. The fear is that customer services departments could be swamped.
Retail spend via mobile handsets and tablets is expected to reach $700 billion by 2018, representing 30 percent of all eRetail by that time.
Given the increased transition to a multiscreen environment, Storefronts should ensure that their billing platform enables carrier billing via PCs and TVs, the report said.
