Momentum for growth comes from mobile devices becoming primary mechanisms for the access, payment and delivery of services
Mobile World Congress, Barcelona: In 2015, the value of mobile and online physical, virtualised and digital goods sales in Europe passed the Euro 500 billion mark for the first time, reaching Euro 570 billion, according to a new study.
Overwhelmingly, the momentum for growth comes from the mobile devices becoming primary mechanisms for the access, payment and (for digital goods) delivery of services, according to Dimoco and Juniper Research’s 2017 publication of ‘The Future of Digital Payments in Europe’ whitepaper, here at Mobile World Congress.
The carrier billing revenue forecast shows significant growth. Revenues from digital content billed via carrier billing in Europe will increase sharply to more than Euro 11.5 billion by 2021, an average annual increase of 27%. Carrier billing is predicted to account for around 21% of all European digital content billing by 2021 (presently 11%).
Meanwhile, industry growth and legislation drive an increasing need for payment services. European credit and debit card spend on digital content will reach Euro 36 billion by 2021, an average annual increase of 7.9%.
With the increasing liberalisation of the European payments market, enshrined in key legislation such as the Payments Service Directive (PSD) and PSD2, the traditional banking monopoly of offering SEPA direct debit services has eroded, allowing payment service providers to enter the space.
“Online merchants are facing a real threat of losing customers over lack of payment choices,” said Gerald Tauchner, president and CEO at Dimoco. “As competition in the online space intensifies, merchants that offer payment choices and an optimal payment experience will not only ensure the acquisition of a single transaction, but more importantly a loyal customer for the long term.”