Carrier deductions, still occupy an important position in the APP ecosystem

BI Chinese station reported on May 14

The next issue for mobile app developers, after launching great apps or digital content, is getting people to buy in the most convenient way and make mobile payments.

In the eyes of the average person, the model of mobile operator withholding fees seems to be too old. However, a new report from the United States pointed out that carrier deductions still occupy an important position in the APP ecosystem. The annual consumption of APP content is as high as 3 billion U.S. dollars. However, operator fees also face obstacles such as excessive fees.

BI-Intelligence, a market research firm run by the U.S. news site BusinessInsider, conducted the study and released some of the report's conclusions on BusinessInsider's website.

Allegedly, in countries where credit card usage is not widespread, carrier billing remains the primary payment model for mobile software downloads and digital content consumption.

In carrier deductions, consumers can pay for the account associated with the mobile operator's mobile phone number, and the carrier will integrate the charge into the bill. This is exempted from the bank to open network banking and other complicated procedures.

In traditional cable services, subscribers subscribe to more than one channel and subscription fees will be integrated into the cable service bill. Therefore, the operator deduction mode, already in the industry already. In the era of feature phones where smartphones have not yet become popular, consumers are the most important purchase and payment models when consumers want to buy personalized ringtones or cell phone wallpapers.

The research of the above institutions shows that there are some new changes in the mode of deduction of carriers under the background of the universal popularization of smartphones.

For users, you'll see mobile apps and digital content spending on your bill. At the operator side, the deduction technology has been greatly improved to provide smoother and more convenient payment services. Chargeback technology upgrade, but also to some mobile software developers, software stores and operators to bring the good news.

However, there are some obstacles to carrier billing model, the most typical is that operators charge the application developer fees too high, which dispel the enthusiasm of developers.

The BI-Intelligence study notes that while carrier billing models are generally associated with emerging markets, in fact, the most profitable markets for companies that offer chargebacks are developed markets such as North America and Europe. Obviously, in the more developed areas of mobile payment, carrier billing models still have their own market.

Allegedly, in emerging markets such as India, although the popularity of mobile phones is very high, but due to financial services restrictions, many people do not have credit card or bank account, operator deductions, has become APP, music, games and other mobile Internet content The most potential payment model for consumption.

It is estimated that the operator deduction mode to achieve the transaction volume, about 3 billion US dollars each year, accounting for 12% of the global mobile digital content consumer market.

The fees charged by operators generally take away 25% to 40% of the transaction amount, which is obviously a very high rate. However, mobile operators have realized that the consumption of mobile digital content is a huge market, and some operators begin to lower their handling fees and thus obtain higher fee income.

For operator deductions mode, the biggest breakthrough point is to reduce the fees charged to developers, which became the general public favorite purchase and payment tools. If tariffs can be reduced, carrier deductions can be achieved, such as the high prosperity in the Korean market. In South Korea, carrier billing models and credit card-based smart phone payment products can compete. (Dawn)