2020 was always forecast to be a bumper year for digital consumption and online spending. The numbers have been on an upward trajectory for the past few years and no one foresaw any reason for it to change. But then again, how many people predicted a worldwide pandemic paralysing the world economy for much of the year?
The fallout from covid-19 and the lockdowns implemented to contain the spread triggered a massive economic and social change, with even the least tech-savvy amongst us pushed towards an online solution for most of their needs. While this reliance on digital may wane slightly once lockdown restrictions are lifted, for many, the push to digital will have affected lasting change. This, in turn, brings new opportunities for business, particularly those with a focus on eCommerce and OTT content.
The DCB industry has been quietly growing for years now, and 2021 could be the year it goes mainstream thanks to a combination of factors now in play.
According to Juniper Research’s recent Direct Carrier Billing: Forecasts, Player Strategies & Emerging Opportunities 2019-2024 report, consumer spend via DCB is projected to reach $90 billion in 2024 and will account for more than 1 in 5 online sales.
With so much available at the click of a button, DCB represents a continuation of the ‘buy with one click’ options that make online transactions for giants like Amazon so seamless. In today’s digital age, many people want – and indeed expect – instant gratification.
As DCB spend is set to rise, it creates a perfect storm with digitally-connected customers who’ve spend the last 12 months being encouraged to buy online.
DCB brings together three things that are becoming expected from consumers in the digital age; simplicity, speed and security. The one-click solution is both quick and easy, but DCB by its very nature is secure. Unlike card transactions, no secure data is passed between buyer and vender in carrier billing. This means that purchases can be made without the user needing to enter all their personal information and their data being encrypted. For consumers new to the online model, the absence of personal data or the need to enter credit card details offers an extra layer of reassurance.
Despite the covid-19 restrictions, the roll-out of 5G continues apace.
5G is estimated to be up to 100 times faster than 4G and opens up a new world of possibilities for gaming, OTT content and digital services, particularly those that utilise a subscription monetisation model. The same desire for instant gratification that makes a one-click payment option so appealing also means that consumers will want to access this rich content without barriers to payment.
GSMA predicts that 5G will reach an estimated 203 million people in Europe by 2025 and 20% of the world’s population that same year – itself predicted to top 8 billion people. With these people presented with faster streaming options for entertainment and seamless online transactions across apps and websites, DCB lets businesses monetise their content and give users instant access at the touch of a button, even if they’re not in possession of a bank account.
Emerging markets and ‘unbanked’ consumers
Many countries that are considered to be ‘emerging’ markets have the same thing in common. They have relatively low banking penetration compared to more established markets and they often have high penetration rates for smartphones. Many people don’t hold a bank account, but they do hold a phone. This makes DCB an attractive option for businesses operating in these regions, particularly in the Middle East and South America.
Another demographic that fits the ‘few bank accounts but many smartphones’ niche is the so-called digital generation. Young people are often considered to be glued to their phones, but many don’t yet have a banking account. Data gathered by The Telegraph suggests that most Europeans under the age of 18 don’t have a bank account, yet nearly 90% of them have a mobile phone.
As more people turn to digital content and online shopping to meet their needs, 5G continues its roll-out and emerging markets continue to their growth, DCB offers a payment method that’s highly compatible with the “new normal.”
MessageCloud is a multi-award winning mobile messaging provider. Its cloud-based SMS and messaging products enable companies to set up and manage one-way and two-way communications effortlessly. Plus, it offers products to analyse phone numbers, verify users and accept payments by mobile.
With its range of products, ‘Send’, ‘Numbers’, ‘Verify’, ‘Analyse’ and ‘Pay’, MessageCloud delivers tools that maximise mobile marketing; from virtual numbers to payment systems for carrier billing. And with more than a decade of delivering messages for diverse markets around the globe, it is a service on which you can rely.