Watch the latest MEF Executive Insights: Carrier Billing Global Outlook & Opportunities video featuring Fernando Luciano from Telefónica Vivo.
In more mature markets, carrier billing has found massive adoption particularly for digital content and services. But in developing markets it is increasingly used as a safe and convenient method for purchasing a broad array of goods and services. Carrier billing provides an inclusive payment method for the huge unbanked population and those without credit cards.
Fernando states that, “With carrier billing we solve the issue of credit card acceptance.” For example, he says customers “can have access to entertainment, e-health, security, insurances, mobile learning services.”
Enthusiasm for smartphones in Latin America is translating into growing end user consumption of online content and services. Despite this, the Latin America market potential is yet to be fully realized, due to the lack of effective payment options. Operators who launch app store carrier billing in Latin America will capture part of the huge mobile payment opportunity that the rise of smartphones has brought.
According to Fernando, “Downloads of virtual goods purchasing are increasing in the app store.” He says that Telefonica’s goal is to, “bring relevant partners to offer relevant content to the end user” and that Telefonica are, “working with Bango, developing an integration… to bring new, relevant digital services to Brazil.”