Report: Direct Carrier Billing Increases Conversion for Mobile App Storefronts

March 7, 2013

A new report from U.K.-based consultancy Juniper Research confirms the effect direct carrier billing has on mobile payment conversion rates. The report, which also indicates that mobile operators are abandoning app storefronts to Apple and Google, found those storefronts that have integrated direct carrier billing have experienced conversion rates five to six times higher than transactions using credit cards while also seeing a bump in average transaction value. Direct carrier billing also enables app sellers to more effectively reach and monetize the underbanked consumer population, the report said.

“While many operators have now abandoned the own-brand storefront approach, by leveraging their billing relationship with the end user they can retain a foothold in the content play,” said Dr. Windsor Holden, research director of Juniper Research and author of Mobile Content Business Models: OTT & Operator Strategy & Forecasts 2013-2017. “Simply by offering consumers a billing choice, monetization rates will rise dramatically.”