The European market for digital content, which could be monitised through mobile operator payment, is expected to increase from an estimated €15.8 billion in 2012 to almost €29 billion in 2017.
Growth in European Digital Content
And with a handset penetration of more than 120%, direct carrier billing is the perfect opportunity to implement an anytime, anywhere payment mechanism, according to the new white paper from Juniper Research and DIMOCO.
The white paper “Is mobile operator payment the ideal payment method for digital content?” found that direct carrier billing implementations have seen between 10 and 14 times the conversion rate of credit cards.
Payment type conversion rate
According to Juniper’s Research Director, Dr Windsor Holden, “The beauty of the direct carrier billing process lies in its simplicity and ubiquity: if enabled, it can be utilised by anyone with a mobile phone, allowing content providers to monetise digital content through the hundreds of millions of consumers who lack credit or debit cards, or who simply don’t want to register a card. Where carrier billing has been deployed, not only do conversion rates rise sharply, but there is a marked increase in average transaction values.”
Highlights of the new white paper are:
- The European digital content market is expected to grow from an estimated €15.8 billion in 2012 to just under €29 billion in 2017.
- More than 283 million adults across Europe do not own a debit card, furthermore the fast increasing proportion of 12-15 year olds who own smartphones are also unable to purchase content this way.
- With a handset penetration of more than 120% in Europe, direct carrier billing represents an opportunity to implement a ubiquitous payment mechanism.
- Direct carrier billing implementations have seen 10 – 14 times the conversion rate of credit card initial transaction rates and content providers have also seen average transaction values rise by more than 40%.
- Juniper Research believes that the value of digital content billed via direct carrier billing will increase from just under €790 million last year to more than 5.2 billion in 2017, representing average annual growth over the forecast period of 46%.
- Content providers are recommended to ensure that their billing platforms enable direct carrier billing via PCs and TVs, to monetize the multiscreen content opportunity.
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