There are 5 times more mobile phones than credit cards.
Simple checkout flows mean up to 10x better conversion rates.
Carrier billing is secure: no personal data gets transmitted.
For merchants, direct carrier billing provides higher payment coverage than traditional bank-based payment methods such as credit cards. This is especially important emerging markets where very few people have access to a bank card: for example in India just 20% of all smartphone owners also own a credit card. Globally, there are 5 mobile phone owners per each credit card owner. In mature markets with a high ownership of bank cards, its convenience and fear of fraud with card-based payments has made carrier billing a popular payment method.
Mobile operators provide direct carrier billing in order to increase revenue from their existing network infrastructure and subscriber base. While revenue from traditional business lines (calls, messaging) is declining, spending through carrier billing is growing. This is especially important for mobile operators located in markets where card-based payments are not popular. In these markets, direct carrier billing is often the only way for users to purchase online content and services. Digital content and physical services merchants are increasingly relying on carrier billing because a growing amount of their users are located in these markets. You can read more about how carriers are becoming the leading payment processors in these markets from our white paper.
One integration with Fortumo connects merchants to over 350 carriers.
Fortumo mediates the transaction between the merchant, consumer & carrier.
One global, monthly net payout makes reconciliation simple for merchants.
With Fortumo, merchants can collect payments using direct carrier billing in 94 markets through 350 mobile operators. In order to do so, they need to create an account with Fortumo, set up a payment service to define what and for how much they want to sell and then integrate Fortumo’s payment button inside of their service.
When a user clicks the payment button, they are shown a payment window, which is fully hosted and localized by Fortumo. The user enters their phone number and confirms which service they wish to purchase. You can try for yourself how the purchasing experience looks from a consumer perspective:
Once a user confirms their purchase, their information is sent back to Fortumo. Fortumo checks with its mobile operator partners which network the end-user is is subscribed to and whether they have enough money on their account to make the purchase. Fortumo then notifies the carrier to deduct the money from the account and asks the merchant to give the user the services they paid for. Direct carrier billing works for both prepaid and postpaid mobile customers: charges are either deducted from a prepaid SIM card or added to the user’s monthly invoice.
Fortumo provides direct carrier billing to a wide variety of merchants. This includes app stores (Google Play), digital media providers (Spotify, Sony, HOOQ, Gaana), gaming companies (EA Mobile, Gameloft, Kinguin, Rovio). and social networks (Facebook, Badoo). Click here to see a full overview of segments where Fortumo provides direct carrier billing. To date, more than 150,000 merchants have signed up to use Fortumo for collecting payments for digital content, games and physical services.
Average payouts to merchants range in between 70%-80%.
Each mobile operator has put in place their own commercial terms for direct carrier billing. This means direct carrier billing revenue shares are fragmented across the world and even inside each country. Generally, direct carrier billing offers lower payout rates than card-based payments which is in turn compensated by the significant increase in payment reach and higher conversion rates. The global average payouts to merchants from direct carrier billing range in between 70%-80% and are usually also dependent on the type of content or services that are monetized. You can see the full overview of commercial terms of carrier billing when you sign up with Fortumo and visit our Revenue Shares page.
Have any additional questions about direct carrier billing? we'll be happy to help out!