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How to Make Carrier Billing Work – A Launch Guide

8 June 2020
Carrier Billing

Carrier Billing for Businesses

Today, there are over 3 billion global smartphone users – that’s more phones than credit cards worldwide. With the majority of web-page views around the world now accessed via mobile, global advances in technology such as the rollout of 5G, and considering that debit and credit cards aren’t widely used in emerging markets, today’s consumers expect smarter ways to make payments and favour mobile transactions.

Carrier billing is being utilised across the world as a universal, secure and convenient method of payment, allowing consumers to purchase anything from clothing, streaming and ticketing, to apps and games by simply adding it to their phone bill.

Consumer spend via carrier billing is expected to rise to almost $90 billion by 2024 and merchants often see higher conversion rates with carrier billing, due to transactions being completed faster than purchases that require the entry of card details.

If you are thinking about offering direct carrier billing as a payment solution for your goods or services, here’s a simple, step-by-step guide on what considerations to take into account when creating a successful launch.

Carrier Billing Launch Guide

  1. For what services will you offer carrier billing as a payment method?

There is no specific formula on what works best, however SLA Digital have successfully increased revenue for merchants, offering carrier billing for companies across a number of market segments from video on demand, to music streaming, gaming and app stores. These entertainment providers are not the only market segments that can avail of carrier billing, we are seeing an increasing interest for non-traditional carrier billing services like food delivery services and eLearning platforms.

  1. Direct Carrier Billing Markets

Research which countries and markets are best suited for offering your goods and services via carrier billing. How carrier billing is implemented in different regions, for different merchants, will depend on the needs and individual use cases of each country – what works for one market may not work in another, so it’s important that your carrier billing partner has local expertise. While emerging markets are expected to have more smartphone users than credit card holders, user experience is driving the future of payments across the world so it’s important to consider all factors here, as well as any barriers to entry.

  1. Pricing

Pricing, as with any goods or services, is key. Once you know what countries and markets you will be targeting, consider whether it is best to adjust and localize your pricing for specific markets and if any transactional payment caps apply.

  1. Charging Methods

Consider what way of charging will work best for your target customer. Should your goods or service be accessed via a one-off payment or a subscription? Will there be additional content and services, or add-ons, for example in-app payments?

  1. Offers

Consider whether your goods or services will offer promotions, discounts or trials. Offering free trials for example, can be a great sales strategy that can lower your cost of new-customer acquisition.

  1. Opportunities Beyond Mobile

Carrier billing isn’t limited to mobile. Choose if carrier billing is offered purely for mobile transactions or if there’s an option, for example to charge content through carrier billing across smart TVs, consoles, mobile web, apps etc.

  1. The Power of Partnerships

It is important to partner with a carrier billing provider with experience and expertise in local markets. SLA Digital has established global mobile operator connections across Europe, the Middle East and Asia. New merchants can be onboarded quickly into our direct carrier billing platform and a single integration allows access to all mobile operators, reducing time, cost and effort to market.

  1. Next Steps

Once you’ve mapped out all of the above, it’s important to think ahead and consider, what next? Looking to the future, the aim will be to grow your direct carrier billing revenue and we have another step by step guide helping you to do just that: 7 Tips to Grow Carrier Billing Revenues

Carrier billing offers merchants access to new customers across the globe and makes customers’ lives easier with faster click flow checkouts. The right approach paired with the right partner will provide the best strategy to make the most of any given market. Get in touch with SLA Digital to find out more.

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