Direct Carrier Billing: Market trends
Direct Carrier Billing is an online mobile payment method that allows users to make purchases by charging payments to their mobile carrier bill. The DCB offers a better user experience than other payment solutions due to its ease of use and its secure customer journey.
DCB Market was valued at USD 28.90 Billion in 2020 and is projected to reach USD 68.17 Billion by 2028, growing at a CAGR* of 11.34% from 2021 to 2028.
The Direct Carrier Billing market demand is mainly by the mobile game development companies. The global games market exceeded US$150 billion in value in 2019, 45% of which was generated by mobile games. In recent years, mobile games have accounted for more than 30% of all app downloads, 74% of consumer spending, and 10% of all time spent in-app.
CAGR from 2020-2027
Currently, Asia Pacific dominates the Direct Carrier Billing market, followed by Europe. This comes down to the acceptability of using DCB as an alternative payment platform (Example: Japan and Korea) as well as the fact that many people in the APAC region do not have access to bank cards (Example: India).
According to Fortumo’s carrier billing report in the Asian market, when it comes to monetizing various digital services, service providers face problems related to low bank card ownership. This factor is founded as an opportunity to expand the scope of DCB services in Asia.
Japan dominated the DCB market in APAC region in 2019 with a market share of 36.1% and is expected to continue its dominance over the forecast period accounting for 35.0% of the total market revenue share in the Asia-Pacific region by 2027. In Europe, Germany dominated the DCB market in 2019 with a market share of 21.9% and is expected to continue its dominance over the forecast period accounting for 23.0% of the total revenue share of the market in Europe by 2027.
In the Middle East, DCB is becoming a popular payment method, especially for digital services. According to the first DCB index developed by Evina, Bahrain, Egypt and Qatar are the most attractive markets for DCB. However, Saudi Arabia dominated the DCB market in the Middle East & Africa region in 2019 with a market share of 36.6% and is expected to maintain its dominance over the forecast period accounting for 34.0% of total market revenue share in the region by 2027.
In Africa, South Africa is one of the most advanced countries and one of the main contributors to the development of the African continent. The DCB Market in South Africa will reach 707.2 Million US$ by 2027, growing at a CAGR of 8.6% over the forecast period. This comes down to the fact that more than 88.50 million subscribers have mobile and smartphone access in the country. Another problem is that 40% of adults are still unbanked in South Africa, which is considered a middle-income economy. Credit cards are not a preferred method of payment for individuals. The growth of DCB in South Africa will be accelerated by all the statements made.
*CAGR: compound annual growth rate
Source: GLOBAL DIRECT CARRIER BILLING MARKET https://www.theinsightpartners.com/
