Innovation, security and consolidation predicted to be top of mind for merchants and consumers alike in 2012
MUNICH AND LONDON. – January 18th, 2012 – mopay, a global leader in innovative payment solutions for online merchants, today announced that direct carrier billing will be a catalyst for innovation and change within the mobile payments industry in 2012. More and more organizations across vertical industries will introduce direct carrier billing solutions in 2012, primarily driven by increased globalization and consumer concern for online security given the explosive growth of identity theft and the rash of recent data breaches. Innovations such as HTML5 will also open up new opportunities for direct carrier billing as retailers and providers adopt this new technology.
According to the Yankee Group, mobile payments will account for more than $1 trillion of the global economy by the year 2015. Spurring this growth, mopay predicts the following for 2012:
- One Size Does Not Fit All: merchant customization will extend to the transaction process to further increase consumer engagement and provide unique user experiences. Creating compelling and unique online user experiences is increasingly becoming the biggest differentiator for online merchants. In 2012, this will extend to the check-out and payment process as merchants will employ direct carrier billing solutions to customize these processes and offer their customers more payment options while also increasing the likelihood of order completion and repeat customers
- World Domination: direct carrier billing will finally become 100 percent global. Direct carrier billing adoption will increase tenfold as globally established solution providers outpace local and regional solutions, further enabling merchants to expand their reach by monetizing their products and services on a global level. Smaller solution providers will likely be acquired and folded into the solution portfolios of larger players looking to add local and niche expertise in markets they wish to successfully penetrate.
- Consumer Security Concerns Drive Mobile Payments Adoption: security will emerge as a major criterion for direct carrier billing solutions. With data breaches and identity theft continuing to surge, consumers are demanding payment options that require as little personal information and confidential financial numbers as possible. In 2012, direct carrier billing will emerge as a true contender to replace credit cards for online transactions as the inherent security of the payment method will become known given the only information used is a mobile or landline phone number. As the actual phone is needed to complete the purchase, the risk of unauthorized purchases is potentially zero compared to data breaches involving credit cards.
- Cutting-Edge Industries Embrace Direct Carrier Billing: more providers – from online dating to sports ticketing – will offer direct carrier billing options in novel ways. Direct carrier billing will enter a wide array of industries and operate in new scenarios of application, including entertainment and sports ticketing, expanded reach into paid content sites, insurance and subscriptions. Additionally, cross-platform online content and services based on new technologies like HTML5 will grow and become the new standard. Windows mobile will evolve as a third major mobile platform, coexisting with cross-platform content well into 2014.
- Competition Rises: further consolidation within the market will add new levels of competition and offerings. In 2011, major global technology platforms began acquiring or establishing their own direct carrier billing services. As a result, other big players entered the mobile payments arena via acquisition and in 2012 each will try to differentiate themselves by adapting their current offerings to new technologies. As such, transaction costs will reach an all-time low while new KPIs – such as cross-platform billing capabilities, conversion rates, fall back payment methods, customer support and analytics/PI – will gain importance.