By Telecom Lead Team: Direct
carrier billing will be a catalyst for innovation and change within the mobile
payments industry in 2012.
More
and more organizations across vertical industries will introduce direct carrier
billing solutions in 2012, primarily driven by increased globalization and
consumer concern for online security given the explosive growth of identity
theft and the rash of recent data breaches.
Innovations
such as HTML5 will also open up new opportunities for direct carrier billing as
retailers and providers adopt this new technology, according to mopay, a global
provider of payment solutions for online merchants.
Everyone
within the direct carrier billing space must bear in mind that much of the
activity witnessed in 2011 will not only continue but become amplified.
Merchants will chose their payment partners more deliberately, emphasizing
features such as conversion rate optimization, cross-platform support and
global as well as local expertise alike. We’re already seeing some of these
trends come to life, particularly on the security front, which everyone will want
to keep an eye on,” said Kolja Reiss, managing director, mopay.
mopay
predicts the following mobile payment trends for 2012:
- One Size Does
Not Fit All: merchant customization will extend to the transaction process
to further increase consumer engagement and provide unique user
experiences. Creating compelling and unique online user experiences is
increasingly becoming the biggest differentiator for online merchants. In
2012, this will extend to the check-out and payment process as merchants
will employ direct carrier billing solutions to customize these processes
and offer their customers more payment options while also increasing the
likelihood of order completion and repeat customers.
- World
Domination: direct carrier billing will finally become 100 percent global.
Direct carrier billing adoption will increase tenfold as globally
established solution providers outpace local and regional solutions,
further enabling merchants to expand their reach by monetizing their products
and services on a global level. Smaller solution providers will likely be
acquired and folded into the solution portfolios of larger players looking
to add local and niche expertise in markets they wish to successfully
penetrate.
- Consumer
Security Concerns Drive Mobile Payments Adoption: security will emerge as
a major criterion for direct carrier billing solutions. With data breaches
and identity theft continuing to surge, consumers are demanding payment
options that require as little personal information and confidential
financial numbers as possible. In 2012, direct carrier billing will emerge
as a true contender to replace credit cards for online transactions as the
inherent security of the payment method will become known given the only
information used is a mobile or landline phone number. As the actual phone
is needed to complete the purchase, the risk of unauthorized purchases is
potentially zero compared to data breaches involving credit cards.
- Cutting-Edge
Industries Embrace Direct Carrier Billing: more providers from online
dating to sports ticketing will offer direct carrier billing options in
novel ways. Direct carrier billing will enter a wide array of industries
and operate in new scenarios of application, including entertainment and
sports ticketing, expanded reach into paid content sites, insurance and
subscriptions. Additionally, cross-platform online content and services
based on new technologies like HTML5 will grow and become the new
standard. Windows mobile will evolve as a third major mobile platform,
coexisting with cross-platform content well into 2014.
- Competition
Rises: further consolidation within the market will add new levels of
competition and offerings. In 2011, major global technology platforms began
acquiring or establishing their own direct carrier billing services. As a
result, other big players entered the mobile payments arena via
acquisition and in 2012 each will try to differentiate themselves by
adapting their current offerings to new technologies. As such, transaction
costs will reach an all-time low while new KPIs such as cross-platform
billing capabilities, conversion rates, fall back payment methods,
customer support and analytics/PI will gain importance.
According
to the Yankee Group,
mobile payments will account for more than $1 trillion of the global economy by
the year 2015.