This market report takes a look at the carrier billing landscape in Western Europe: Germany, France, United Kingdom, Netherlands, Belgium, Greece, Austria, Switzerland, and Ireland. For data on Spain and Portugal, please check our recent Latin America & Iberia market report.
Carrier billing is estimated to account for 14% of all digital gaming transactions in Western Europe, according to SuperData. This makes it the 3rd most popular payment method for gaming in the region after credit cards and digital wallets.
The popularity of carrier billing in Western Europe results from its user-friendliness: transactions do not require users to log in to any additional accounts or enter personal information about themselves. Instead, payments are confirmed by using their mobile phone number and a 2-step verification process.
The simpler checkout flows coupled with consumer privacy are also the primary reason why digital content merchants see better conversion from carrier billing compared to other online payment methods:
Recent changes in legislation (GDPR, PSD2, and related Strong Customer Authentication (SCA) requirements) also support the growth of carrier billing in Western Europe, as substantially less consumer data is collected, while carrier billing is exempt from PSD2 and SCA regulations.
Carrier billing in Western Europe should be used in parallel with credit card payments. While 50% of the people in the profiled markets own a credit card, the rest do not. It is for these consumers that digital merchants offer carrier billing as an alternative payment method to their user base. Additional insights on how cannibalization (users switching from one payment method to another can be avoided when using multiple payment methods can be found from our white paper on the topic.
Data presented in the white paper has been taken from public sources of information and aggregated data from payments processed by merchants using Fortumo’s Web SDK product.
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