Direct Carrier Billing Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Direct Carrier Billing (DCB) market is expected to reach a size of $ 40,483,600,000 by 2023, and is expected to reach $ 105,550,100 by 2032. The CAGR of the Direct Carrier Billing (DCB) market from 2024 to 2032 is expected to be strong at 11.2 percent. The growth of the Direct Carrier Billing (DCB) market is mainly driven by the increase in the use of mobile terminals for transactions and the trend of digital content consumption. As users look for convenient payment methods, direct carrier billing provides a smoother and more convenient way to pay, which is convenient for users and operators. There are also many factors driving the growth of the direct carrier billing market, such as the development of mobile payment technology, the popularity of smart terminals, the popularity of digital services such as games, music, and e-commerce, etc., etc. The major players in the industry, such as Boku, Fortumo and Payforit, are actively promoting innovation and establishing strategic cooperative relations to enhance their service capabilities. In the meantime, they are also expanding their business scope. For example, Boku has established a good relationship with some mobile phone operators, and Fortumo has focused on integrating direct carrier billing into emerging markets, and thus expanding the customer base. These strategies are very important for these companies to take advantage of the market demand for direct carrier billing.

Regional Market Size

Regional Deep Dive

Direct Carrier Billing (DCB) is a rapidly growing market that is being driven by the increasing use of mobile payment solutions and the rising demand for digital transactions. In North America, Europe and Asia-Pacific, the growing use of smart phones and the expanding consumption of digital content are the main drivers. In the Middle East and Africa, the market is being driven by the regulatory framework and the high level of mobile penetration. In Latin America, the rise of mobile wallets is driving the market. In general, the market is being driven by the technological developments, the preferences of the consumers and the regulatory framework, which differs from region to region.

Europe

• The European Union's PSD2 regulation is fostering a more competitive environment for payment services, leading to innovations in DCB solutions that enhance user experience and security.
• Companies like Boku and Fortumo are expanding their DCB services across European markets, capitalizing on the growing trend of in-app purchases and digital subscriptions.

Asia Pacific

• In Asia-Pacific, the rapid growth of mobile gaming has led to increased adoption of DCB, with companies like Tencent and Alibaba integrating DCB into their platforms to facilitate in-game purchases.
• Regulatory changes in countries like India, which are aimed at promoting digital payments, are expected to further boost the DCB market as more consumers turn to mobile payment solutions.

Latin America

• The growth of mobile wallets in Latin America, driven by companies like MercadoPago and PagSeguro, is creating a favorable environment for DCB adoption, particularly in countries like Brazil and Argentina.
• Government initiatives aimed at increasing financial inclusion are encouraging the use of mobile payment solutions, including DCB, among unbanked populations in the region.

North America

• The introduction of new regulations by the Federal Communications Commission (FCC) aimed at enhancing consumer protection in mobile payments is reshaping the DCB landscape, encouraging more users to adopt this payment method.
• Major telecom operators like Verizon and AT&T are partnering with digital content providers to offer bundled services that include DCB options, making it easier for consumers to access premium content.

Middle East And Africa

• The rise of fintech companies in the Middle East, such as Payfort and Telr, is driving innovation in DCB, enabling easier access to mobile payment solutions for consumers in the region.
• Cultural factors, such as the high smartphone penetration and a young population, are contributing to the increasing acceptance of DCB as a preferred payment method for digital content.

Did You Know?

“In 2022, it was estimated that over 50% of mobile users in Europe had made at least one purchase using Direct Carrier Billing, highlighting its growing acceptance as a payment method.” — example.com

Segmental Market Size

Direct Carrier Billing (DCB) is a fast-growing part of the digital payments industry. It facilitates the seamless purchase of digital goods and services. It is mainly driven by the increasing penetration of mobile phones and the growing demand for convenient payment solutions from consumers, especially in emerging markets where the banking system is underdeveloped. In addition, regulatory support for mobile payments enhances the appeal of direct carrier billing as a payment method. At present, direct carrier billing is mainly in a scale-up stage in Europe and Asia/Pacific. In Europe, companies such as Boku and Fortumo are leading the charge. They work with mobile operators to enable billing for digital content and services. Direct carrier billing is mainly used for in-app purchases for gaming and subscription services. Direct carrier billing is driven by the increasing popularity of mobile gaming and the shift towards cashless transactions. Technological developments such as blockchain and improved mobile security are also influencing the market.

Future Outlook

Direct carrier billing is expected to see a significant increase in its value from $ 41 billion in 2023 to $ 105 billion in 2032, with a robust compound annual growth rate (CAGR) of 11.2%. The growth of direct carrier billing is supported by the increasing use of mobile payment solutions, especially in emerging markets where the banking system is underdeveloped. In the coming years, as the penetration of mobile phones increases in the Asia-Pacific and African regions, direct carrier billing is expected to become the preferred payment method for digital content, games and subscription services, with a penetration of more than 30% in these regions by 2032. Direct carrier billing is expected to continue to grow, as technological advances, such as improved security and the integration of direct carrier billing with various digital platforms, continue to drive the confidence and use of end users. Also, the support of governments and the implementation of favorable policies to encourage the development of digital payment solutions will help to promote the growth of the industry. Also, new trends, such as the rise of the gig economy and the growing demand for a smooth payment experience, will support the growth of direct carrier billing. As consumers are increasingly looking for easy and flexible payment methods, direct carrier billing is expected to play an important role in the digital transaction landscape and will become a key enabler of the digital economy.