Direct Carrier Billing Market Size, Share, and Industry Analysis, By Type (Limited DCB, Pure DCB, and MSISDN Forwarding), By Platform (Windows, Android, and iOS), By Feature (Pre-defined Window, PIN defined, Mobile Originated & Mobile Terminated, and Others), By Application (App Stores, Gaming Industry, Streaming Platforms, Movies & Music, and Others), and Regional Forecast till 2032

The global Direct Carrier Billing (DCB) market is witnessing significant growth due to increasing digital content consumption. DCB is a mobile payment solution that allows users to buy and charge them to their mobile phone bill or prepaid balance. It is an alternative to traditional payment methods such as credit or debit cards. It enables seamless transactions for digital content such as apps, games, streaming services, and online subscriptions. Additionally, the growing demand for convenient payment methods bolsters the adoption of DCB in regions with low banking penetration.

• In June 2024, Digital Virgo offered an in-depth overview of strategic efforts to improve digital connectivity and infrastructure across the African continent by connecting over 150 operators via a single API, streamlining alternative payment methods such as direct carrier billing.  

Impact of AI on the Direct Carrier Billing Market

Artificial Intelligence (AI) is transforming the direct carrier billing market by optimizing payment processes, enhancing fraud detection, and personalizing user experiences. AI algorithms analyze consumer behavior, offering insights that drive engagement. They enable companies to create personalized promotions and discounts based on user behavior and preferences, improving customer retention. AI-powered chatbots and virtual assistants streamline customer queries and support, reducing wait times and enhancing user experience.

Direct Carrier Billing Market Driver

Growth in Digital Content Consumption Drives the Market

Direct carrier billing provides a convenient payment method for users who increasingly rely on mobile devices for digital content such as gaming, video streaming, and apps. The rising popularity of microtransactions, driven by in-app purchases and the growing mobile gaming industry, fuels the use of DCB as the preferred payment method. Moreover, the shift toward subscription-based models for OTT platforms and digital services accelerates the adoption of direct carrier billing, offering seamless and accessible payment solutions.

• According to industry experts, in February 2024, Uswitch stated that there were 71.8 million mobile connections in the U.K. in 2022, reflecting a 3.8% increase compared to 2021. This rising number of mobile phone users is contributing to the growth of the direct carrier billing market as of February 2024.

Direct Carrier Billing Market Restraint

Regulatory and Privacy Concerns May Affect the Market Growth

The regulatory and compliance issues vary significantly across regions, making it challenging for companies to offer uniform DCB solutions. Privacy concerns and limited awareness in some markets further hinder its widespread adoption. Moreover, direct carrier billing imposes transaction fees by mobile operators, making it expensive for merchants and service providers to adopt compared to other transaction methods. Furthermore, DCB is primarily restricted to digital goods and services, limiting its scalability, which constrains its adoption.

Direct Carrier Billing Market Opportunity

Adoption of Subscription Services Presents a Notable Opportunity for Market Growth

Partnerships between DCB providers and over-the-top (OTT) platforms such as video and music streaming services present significant monetization opportunities, as these services rely on subscription-based models. The growing popularity of in-app purchases in mobile gaming and entertainment apps provides strong support for direct carrier billing. Moreover, as smartphone adoption increases, DCB offers a viable alternative to traditional payment methods, enabling consumers with limited bank penetration to access services.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of AI on the Global Direct Carrier Billing Market
• Consolidated SWOT Analysis of Key Players

Analysis by Type

By type, the market is divided into limited DCB, pure DCB, and MSISDN forwarding.

Pure DCB leads the direct carrier billing market due to its flexibility and full-service offering. It is widely adopted by businesses that offer premium digital content, including gaming, video-on-demand, and music streaming services. They offer subscriptions, recurring payments, higher transaction limits, and secure authentication processes to enhance user retention. The versatility of direct carrier billing makes it attractive for large-scale digital service providers and content platforms, driving its dominance in the market. MSISDN forwarding is expected to experience the highest CAGR during the forecasted period, driven by increasing demand for frictionless and secure payment methods. Additionally, the integration of this method into various mobile-based ecosystems is anticipated to fuel the rapid expansion.

Analysis by Platform

By platform, the market is divided into Windows, Android, and iOS.

Android is the leading platform in the market due to its extensive user base in emerging markets. This makes it a prior choice for mobile operators and service providers looking to capitalize on DCB’s potential. Android’s flexibility, combined with its strong presence in price-sensitive markets, solidifies its position in the DCB market.

• Industry experts state that, Android dominated the market in 2022 with 76.4% of total market revenue.

Following Android, iOS is expected to exhibit the highest CAGR during the forecasted period. This is driven by the increasing monetization of digital content on Apple’s ecosystem, including app subscriptions, media streaming, and in-app purchases, that aligns with the premium spending habits of iOS users.

• In February 2024, Shemaroo Entertainment, a media and entertainment company, expanded its global presence through four international telecom operators, Zain, STC, and Mobily in Saudi Arabia and Vodafone in Qatar. These collaborations are enabled by direct carrier billing partners One97 and 3A net Communications, allowing customers to subscribe to ShemarooMe, Shemaroo’s OTT platform, via the mobile operator’s payment gateway.

Analysis by Feature

By feature, the market is divided into pre-defined window, pin defined, mobile originated & mobile terminated, and others.

The mobile originated leads the market due to its simplicity and wide applicability. In this feature, the transaction is initiated by the consumer directly from their mobile device. It is widely used for services such as SMS voting, mobile gaming, and app purchases. Consumers can easily initiate transactions directly from their devices, making this feature highly preferred for mobile app purchases, gaming, and digital content. The PIN defined feature is expected to witness the highest CAGR during the forecast period. The increasing emphasis on transaction security and user authentication drives this growth. This method adds an extra layer of security by requiring users to enter a personal identification number (PIN) to authenticate transactions. The feature’s potential for integrating biometric authentication and two-factor systems also contributes to its growth.

Analysis by Application

By application, the market is divided into app stores, gaming industry, streaming platforms, movies & music, and others.

The gaming industry leads the market, driven by the exponential growth of mobile gaming. The convenience of purchasing in-game items and content through mobile billing has made DCB highly appealing to gamers. The rise of multiplayer online, in-game purchases, and virtual goods propels gaming as the largest contributor to the DCB market. Streaming platforms are expected to witness the highest CAGR owing to the global expansion of video-on-demand and music streaming services. Streaming services provide steady, recurring revenue for mobile carriers, making DCB an attractive payment option for consumers. The growing adoption of OTT platforms and the shift toward digital content consumption drives the growth.

• In January 2024, TPAY partnered with Tencent to enable direct carrier billing for PUBG MOBILE players in Egypt, allowing gamers to purchase in-game currency (UC) via their mobile bill. This collaboration expands TPAY’s DCB services to the Middle East & Africa region, covering additional Tencent games, such as Synced and Undawn, in the UAE, Oman, and Qatar.

Regional Analysis

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America holds the leading position in the market, driven by robust digital infrastructure, high smartphone penetration, and widespread access to premium digital services. Consumers in the region benefit from the seamless integration of DCB into their mobile ecosystem, making it a popular choice for small digital transactions, in-app purchases, and subscription services. Moreover, the well-established telecommunication industry provides strong support for DCB, enabling a secure and reliable payment infrastructure. Asia Pacific is expected to exhibit the highest CAGR in the forecasted period, fueled by an expanding mobile-first economy, low banking penetration, and increasing smartphone usage. DCB offers an ideal payment solution for these emerging markets, enabling them to purchase digital content, subscribe to services, and make small-value transactions without requiring a bank account or credit card. Moreover, it is expected to witness widespread adoption due to the rise in youthful population, increasing internet penetration, and growing demand for digital content and services.

• According to industry experts, Asia Pacific registered USD 17.065 billion in 2022.

Key Players Covered

The key players in this market include,

• T-Mobile USA, Inc. (U.S.)
• Centili Limited (U.K.)
• Singtel (Singapore)
• Swisscom AG (Switzerland) 
• NTH Mobile (Switzerland)
• TxtNation Limited (U.K.)
• Infobip Ltd. (U.K.)
• Boku Inc. (U.S.)
• Zong China Mobile (Pakistan)
• Telenor (Norway)
• Orange S.A. (France)

Key Industry Developments

• In September 2024, Telenor Linx, a Telenor Group subsidiary, collaborated with Google to induce direct carrier billing as a payment option in the Google Play Store. This partnership aims to extend DCB globally, providing unbanked users access to premium digital content via mobile payments.