App stores like Google Play and Windows Phone Store that have implemented Direct Carrier Billing solutions have experienced a sharp increase in transaction volumes, average transactions values and conversion rates, according to a new white paper from Juniper Research and Amdocs. The research has also found that while operator storefronts and portals now account for less than 7% of the 55.9 billion app downloads in 2012, the introduction of Direct Carrier Billing solutions on third-party storefronts enabled operators to substantially increase their content revenues.
And this solution works both in developed and developing markets as it allows carriers to reach users that have no credit cards or are using prepaid service (younger demographics). Moreover, the whole process is easier for end users, allowing for few-click purchases. Therefore, it is expected that the scale of the opportunity for app monetization through this mechanism will grow in the years to come.
In fact, there are reasons to believe that direct carrier billing will extend beyond the “pure” mobile realm to include some “real world” items and services such as books, flowers, petrol, tickets, coupons and more.
Plus, with the addition of analytics of the BSS (Business Support Systems) Big Data, the operator can add far more value to mobile commerce, enabling personalized content discovery and super-targeted ads.
The Mobile Payments in the App Store Economy: Winning Strategies for Telcos White Paper is available to download from here.