Direct billing is all gain, with no pain

People have been paying through their mobile phones for a while now – but often only for products designed for mobiles, such as ringtones. Now mainstream purchases on your communications service provider’s (CSP) invoice through smartphones are becoming a reality, thanks to direct billing, which connects a merchant directly through an enabler to the CSP’s billing system. Here, Frédéric Deman, chief executive officer of Netsize, a direct billing enabler, explores what this means for end users, application stores and CSPs.

For the end user, the benefits of direct billing are obvious. Imagine Jake, a rugby fan who wants to watch the final match. He goes online with his smartphone, finds his team’s website and is transported to the pitch. He clicks to pay to view the match, then lands on an unknown web page asking for his credit card details. He decides against it.

With direct billing, Jake clicks once to pay to watch his match – without leaving the website and with no credit card details. One second later, Jake can watch the match. Direct billing is realtime, simple and creates no interruption in the user’s browsing environment.

In addition, users benefit from clear billing text and can buy from any device – mobile phone, desktop or tablet.

The application store opportunity

Application stores provide the user experience that will make or break an OS (operating system) platform. It is crucial to get them right – which implies making the purchasing experience as smooth as possible. Direct billing brings a convenient purchasing experience, removing the unnecessary disruption of credit-card registration. And the experience does not end with buying an application: the next step is using it. With direct billing, it is easy for consumers to buy additional content within the application. Direct billing also ensures better targeting with flexible price points. Content providers can choose the price they want – and change it whenever they want.

So why should application stores do direct billing through a third party such as Netsize? Can’t they connect directly to the CSP? Maybe, but it would probably increase time to market. Application stores sell in many countries with several operators and different regulations. CSP integrations can be complex and in-market experience also helps to choose the best flows to optimise the return on investment. This is where the experts can help: Netsize, for example, covers almost 40 countries through approximately 80 operators.

Netsize will also help stores optimise their conversion rates. How you authenticate someone can vary depending on the device – mobile, tablet or PC – and the network – CSP network, WiFi or LAN. Netsize has both the expertise and the experience to manage such issues.

New CSP revenues

Direct billing gives CSPs access to the revenue streams resulting from new applications and services. It is a good means to generate growth.

With Netsize’s PCS service for CSPs, deployment can be quicker. Netsize has experience in integrating various protocols with CSP platforms and on-board merchants and removes the burden on CSPs’ technical teams. With expertise in handling multiple merchants – both local and international – Netsize PCS can handle the whole on-boarding process on behalf of the CSP, fulfilling regulatory requirements and even taking care of the payment process. Merchants get help in defining the right flows, so more value is created for everyone.

If you fancy watching the latest Hollywood film on your tablet, with direct billing, you just click and pay, then sit back to enjoy – while your application store can focus on the next movie.

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