Carrier billing spend to rise by 74% reaching $122bn by 2027
A new study from Juniper Research, foremost experts in payments, found that carrier billing spend will reach $122 billion globally by 2027, rising from $70 billion in 2023.
This growth of 74% over the next four years will be driven by carrier billing expanding beyond content and into physical goods and ticketing. The market-leading report assesses key verticals across digital content, physical goods and services, and ranks carrier billing spend by the following top verticals, in 2027:
- Digital Games (34%)
- Digital Videos (25%)
- Physical Goods (21%)
- Ticketing (7%)
- Digital Music (6%)
- Other (7%)
Carrier billing is a mobile payment method which allows users to make purchases by charging payments to their mobile phone carrier bill.
Ticketing Spend via Carrier Billing to Grow by over 200%
Whilst digital games and video will account for almost 60% of global carrier billing spend by 2027, the report identified digital ticketing as the fastest-growing area – a key focus for carrier billing platforms and operators over the next four years. It found that MaaS (Mobility-as-a-Service) subscription platforms will be a vital driver of growth.
Report author Michael Greenwood explained: “Carrier billing platforms and operators must look to partner with emerging transport solutions, such as multi-modal transport. The subscription-based service is ideally suited to carrier billing owing to the recurring nature of spend aligning to the payment of mobile bills.”
Japan to Account for 12% of Global Carrier Billing
The report identified Japan as being a market of particular interest. Whilst accounting for only 2% of global mobile subscribers, it will represent 12% of global carrier billing spend by 2027.
A preference for cash amongst consumers and concerns about using payment cards online will drive users to increasingly adopt carrier billing. As such, the report urged carrier billing platforms to accelerate their partnerships with online retail merchants, enabling retailers to offer carrier billing payment solutions, and additionally benefit from Japan’s higher-than-average carrier billing spend. Juniper Research
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