Direct Carrier Billing (MOBILE PAYMENT GATEWAY) – What You Should Know


Direct Carrier Billing (DCB) or Wireless Application Protocol (WAP) is a mobile payment gateway, which is more popular nowadays. Now consumers can buy online services, products or games using their mobile phone bill.  At the time of checkout the customer selects the Direct Carrier Billing option on a smartphone or mobile phone and follows a two-factor authentication procedure, and the consumer’s mobile account is charged for the amount of the purchase including processing fees.
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Over time, DCB has grown in popularity as one of the reliable payment gateways. Why is DCB a more popular payment gateway? The popularity of DCB is rooted to its benefits. Let’s a take a closer look at the benefits of DCB.

Growing market

It is on record that about 95% of people in the world have a mobile phone, but only 49% have a bank account and 30% people have credit or debit card. So, you can imagine how the DCB market is growing. The global carrier billing market according to Ovum was worth $15 billion in 2014, and it is predicted to raise around $24.7 billion by the year 2019.

Anyone with mobile phone can use DCB

Direct carrier billing is one of the easiest payment methods to date. Because Direct Carrier Billing does not require any credit card, debit card or even a bank account. Anyone can avail this system with his smart phone or other devices. The only thing needed to confirm payments is a device with a SIM card.

Conversion rate

If you sell services or products, you know how vital conversion rate is! Direct Carrier Billing requires only consumer’s phone number to make payments. But card-based payments need the user to share their name, card number, etc. According to a survey, most people don’t like to share their card number to place an order. They want secure and hassle-free carrier billing service. This is the reason why you can get ten times conversion rate using Direct Carrier Billing payment gateway.

It’s easy and simple

No need to sign up or sign in. When popular mobile payment gateway like PayPal or Payoneer requires a consumer to sign up or sign in to their account if he/she want to purchase a product, direct Carrier Billing needs just a phone number.

Price of the product

The stimulation of the buyers can boost your revenue day by day. Pricing used in the Carrier Billing mechanism is genuinely cheaper than traditional payment or card-based payment system. Lower prices can motivate the consumer to buy a product. On the other hand, consumers don’t want to use their credit or debit card if the cost of the product is too low. Direct Carrier Billing works well in this kind of situation.

Is there any disadvantage of direct carrier billing?

Well, every product has some pros and cons. In the case of Direct Carrier Billing, the main disadvantage is the traction fees, which is somewhat high. Comparable to other Card-Based payment mechanisms, huge fees are charged to the merchant whenever a customer uses Direct Carrier Billing to make a purchase.
Obviously, if you are a service provider, you can’t sell any service in low price, to fill the gap you have to increase the price of the product. But by doing this, you can lose very impulsive buyers, and your conversion rate can be decreased. However, the good news here is that at present MNOs (Mobile Network Operator) are looking to reduce their share on the transaction, if they continuously show their interest to do, we can imagine a very bright future of Direct Carrier Billing.

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