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Carrier Billing

In this article

Carrier billing, also known as direct carrier billing or mobile billing, is a payment method that allows consumers to make purchases and pay for digital goods and services using their mobile phone accounts. Instead of using traditional payment methods like credit cards or bank transfers, the cost of the purchased item is added to the consumer’s mobile phone bill or deducted from their prepaid balance.

Here’s how carrier billing typically works:

1. Selection of Product or Service: The consumer selects a digital product or service, such as mobile apps, games, digital content, or subscriptions, from a merchant’s website or mobile app.

2. Payment Process: During the checkout process, the consumer chooses carrier billing as the payment method.

3. Authorization: The consumer provides their mobile phone number, and a one-time password (OTP) or verification code may be sent to the phone to confirm the transaction.

4. Billing: The cost of the purchase is added to the consumer’s monthly mobile phone bill or deducted from their prepaid balance, depending on their mobile carrier and plan.

5. Confirmation: Once the payment is processed successfully, the consumer receives confirmation of the transaction, and they can access or use the purchased digital goods or services.

Carrier billing offers several advantages for both consumers and merchants:

1. Convenience: Consumers can make purchases quickly and easily without needing to enter credit card details or set up additional payment accounts.

2. Accessibility: Carrier billing allows consumers without access to traditional banking services or credit cards to participate in digital commerce.

3. Security: Since carrier billing transactions are authorized using the consumer’s mobile phone number and a verification code, they are often considered secure and protected against fraud.

Increased Conversion Rates: Carrier billing can help merchants increase conversion rates by offering a frictionless payment option that appeals to a broader audience, including those who may not have access to other payment methods.

Overall, carrier billing provides a convenient and accessible payment solution for purchasing digital goods and services, particularly in regions where traditional payment methods may be less prevalent or accessible.

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