App stores, gaming and media streaming still remain the main sources of revenue from carrier billing, and these services have all boomed under Covid-19 lockdown conditions.
A recent study from Juniper Research found that direct carrier billing spend is estimated to reach $100 billion by 2025, surging from $37 billion in 2020. So, as we move forward, what will contribute to this growth in 2021?
#1: Cloud Gaming
In 2020 the gaming industry has accelerated with spikes seen in transactional volume, and these trends may well outlive the pandemic.
Casual gaming is reaching new audiences, making on-the-go gaming easily accessible on mobile devices. Hyper-casual is mobile’s latest disruption in the industry and its mass appeal with snackable and visually stimulating content means it isn’t going anywhere anytime soon.
The popularity of casual gaming has been a driver for cloud gaming, with cloud gaming revenue forecast to hit $12 billion by 2025, a significant jump from $1.4 billion in 2020. The increased adoption of 5G will have a big influence due to higher speeds and lower latency, and cloud gaming platforms may also consider partnering with mobile operators in order to guarantee quality 5G gameplay.
With an ever-increasing demand for casual gaming and lifted limits as a result of 5G direct carrier billing holds huge potential for cloud gaming. By giving customers the option to charge subscriptions, one-off payments or in-game purchases conveniently to their mobile phone bill, we are sure to see more cloud gaming revenue driven by carrier billing in 2021.
#2: eSports
Explosive growth in the eSports market is expected within the next 2 to 3 years with increased online activity and the rollout of 5G having the greatest impact.
There are opportunities for mobile operators to reposition themselves in the age of 5G - growing core revenue streams through eSports is one of them. Similar tocloud gaming mobile operators are an extremely good potential partner for eSports platforms, with an already established customer base and digital traffic.
As the subscription economy expands into new services eSports may be the latest industry to follow in the success of streaming platforms such as Netflix and Disney+, and future developments could also exist in AI and the ‘third space’, for example shopping opportunities inside a game.
eSports has huge potential for returns with a young demographic prepared to pick up high ARPU tariffs. And as continued advancements in mobile eSports take hold, the adoption of carrier billing could be perfect for increasing mobile payments in 2021.
#3: Mobile Ticketing
The pandemic has brought more urgency to the vision of using carrier billing for physical service transactions and public transport authorities are giving more consideration to DCB as an alternative to cash payments. So as emerging markets attempt to bring in new transport and ticketing innovations through mobile, carrier billing may be the obvious solution.
As transport services make the move to mobile ticketing they must adapt to current user demand and preferences, taking into account time, convenience and cost as well as payment preferences.
In 2021 facilitating fast and frictionless ticketing through carrier billing payments could offer the necessary pay-as-you go solution, as we move towards a future of more fluid, user-centred mobility.
#4: e-Learning
Heather Stewart,
Marketing
Manager, SLA
eLearning has seen significant growth due to the pandemic, and there is potential for carrier billing payments. User experience is enhanced by a convenient payment solution, and carrier billing could make eLearning more appealing and accessible to markets worldwide.
Educational institutions, companies and personal-use learners may wish to make eLearning part of their ‘new normal’, after experiencing the benefits first-hand in lockdown. It has even been shown to increase retention and be more efficient in some cases than classroom learning - so if eLearning is here to stay in 2021, does this mean more opportunities for carrier billing payments?
#5: Health and Fitness
It is clear that consumers have turned to mobile devices to support their daily routines in 2020, with searches, downloads and revenue for health and fitness apps all on the rise.
It’s probable that the move to mobile for health and fitness will continue in 2021, and carrier billing offers an attractive way to pay. Simple and convenient payments can lead to increased users plus customer retention - so we can expect to see more health and fitness services turning to carrier billing in 2021.
#6: Bundling
Bundling is one of the biggest opportunities going forward for carrier billing with much of the activity driven by 5G.
According to Omdia from Q2 2019 to Q2 2020 55% of 5G mobile broadband plans were bundled with OTT digital services. Growth in market share of mobile bundling is expected to remain at just under 30% over the next 5 years and 5G bundling revenue is estimated to overtake non-5G by 2023.
The rollout of 5G in 2021 will open new possibilities of what operators can bundle with their tariffs beyond music and VOD subscriptions. Opportunities may exist in cloud gaming, live sports streaming, eSports and immersive experiences via AR and VR, and carrier billing will be an important facilitator for mobile payments.
As we move forward into a new year “app habits are solidifying and mobile is becoming even more deeply rooted in our routines”. By 2024 it is expected that carrier billing will overtake SMS as a contributor to total mobile service revenue. The unprecedented changes in online spending habits and mobile usage trends in 2020 have clearly accelerated growth, and as the mobile payments industry adapts there is huge scope for carrier billing to make a big impact in 2021.
