Gamechanger: Carrier billing and fintech


By Margit Anglmaier, vice president for corporate communications, Dimoco

Through technological innovations, fintech companies offer products, solutions and services that help customers pay, invest and save their money. This new tech follows a long financial evolution that started with barter trade, moved to commodities and then led to weighted ‘money’, before reaching the introduction of currency as we know it today. So what’s next?

The introduction of a multitude of screens and other fast moving tech developments are upending the entire payment industry. Unlike the gradual evolution of the past, the financial industry is now experiencing a revolution through the dramatic wide-reaching change of digitalisation. This means cutting edge improvements in the way we purchase goods and services. The ‘any screen, any device’ trend didn’t stop at the front of the financial industry’s door.  In fact, it is being driven by fintech’s new payment possibilities.

The revolution

Over the past decade, fintech has been the catalyst of a digital revolution that is optimising financial services like nothing before. The best example of this sector’s game changing ways is carrier billing.

By its very nature, carrier billing combines technology and finance to enable consumers to pay for products and services through mobile network operators in fast and trusted ways never experienced before. This payment method first started through premium SMS by way of a mobile terminated (MT) and mobile originated (MO) SMS. The way it worked was people paid through receiving or sending an SMS. Later, it allowed consumers to pay direct carrier billing via a click-through process.

For many businesses, carrier billing was a digital starting point and served as a significant game changer in this world. According to one recent study, “storefronts which have implemented carrier billing have seen a sharp uplift in both content transaction volumes and average transaction values” [Juniper Research/DIMOCO, 2016]. In regards to digital content purchases, this payment method gave consumers an easier, faster and interruption-free option at the checkout process, flaming the fires for significant growth opportunity.

So, why is carrier billing such an essential game changer in the digital space?

Digital payment for all

Think about consumers who don’t possess debit or credit cards. These include the unbanked, those in younger demographics and many people in countries with low credit card penetration rates. From a business perspective, some might assume the lacking of an easy payment option would make tapping into these markets’ potential impossible. Well, that’s just plain wrong.

The beauty of carrier billing is it enables businesses to bill amongst a far wider and diverse user base. As long as a person has a mobile network, carrier billing is a method that can be used for just about anything available for digital purchase. Carrier billing can also be seen as a complement to already existing payment options; it’s one important item on the payment opportunity menu.

Easily executed, whenever

Carrier billing, like other payment options, can also be used whenever needed, 24 hours a day, seven days a week. The unique upside with carrier billing is there’s no need to insert complicated long digit codes or to do pre-registrations. Carrier billing stands out because it’s tremendously user friendly. It’s also reassuringly secure because it relies on the trusted billing relationship of the mobile network operators with their customers.

Available on all screens

Beyond being an anytime service, carrier billing also has the advantage of being a digitally anywhere option. It can be used on multiple devices. Whether you’re at home or on vacation a thousand miles away, goods and services can be purchased on any accessible authorise smartphone, tablet, PC or other appropriate device.

One click payment

Every consumer likes to do things in easiest way possible, and carrier billing’s one-click option satisfies this desire. Because of the trusted billing relationship at the core of carrier billing, users with a smartphone can, in most countries and on many different network operators, purchase digital content and services with just a simple, single touch.

The fintech revolution is upon us and its flag bearer is carrier billing. The safe, speedy and versatile vehicle for buying and selling digitally is an essential example of just how far things have changed from just a few decades ago when so much more was needed to make even the simplest purchase.

Dimoco is a provider of carrier billing and mobile messaging.


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