Carrier Billing Is An Alternative Way To Pay On Mobile -- And It's Beginning To Catch On

You may remember carrier billing from the early days of mobile phones — you bought a ringtone via text and added the cost of the purchase directly to your mobile bill.

Once we entered the mobile Internet age though, and the things you could purchase from your phone expanded dramatically, carrier billing was mostly forgotten.

Instead, there’s been a lot more focus on mobile payments startups. Venture capital firms and traditional payment players have shown more interest in software-centric payment tools, like Square and Stripe.

But now a recent report from BI Intelligence finds that carrier billing is being updated for the mobile app age. While the concept of adding charges to one’s mobile bill hasn’t changed, carrier billing technology has made some giant leaps. It now offers a smooth, low-friction way for consumers to pay for digital content like apps and tokens within apps.

That’s why it has developers, app stores and mobile carriers so excited.

But that said, there are some major hurdles if carrier billing is ever going to take off and grab share of mobile payments volume. In particular, the high prices currently charged by mobile operators for providing carrier billing services has kept many app developers away. In the report, BI Intelligence explains how carrier billing works, who is using it, and whether or not it has the potential to catch on for physical goods, beyond the world of digital content.

Access the Full Report By Signing Up For A Free Trial Today >>

Here are some key points from the report:

In full, the report:

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.