A2P SMS trend update: Why is the A2P messaging market growing so fast?

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A2P SMS future predictions

1. Time-sensitive messages: SMS are sent out within seconds. This helps companies to quickly and directly inform their target groups, e.g. systems alerts via text message improve quality of other services.

 
2. Online businesses: The more web platforms exist, the more there is a need for 2-factor authentication. One-time passwords sent via SMS give companies an opportunity to let their customers verify their accounts, confirm their wire transfer transactions and many other use cases to improve security standards.

 
3. Service- and sales-driven communication: Delivery alerts, shipment notifications, appointment reminders, discounts – the SMS communication channel is used to improve service quality and to increase sales efforts. A2P SMS are directly integrated within companies’ CRM systems and sent out automatically according to the defined requirements. SMS messaging (text messaging) is the communication channel for reaching target groups — it’s the most trusted and effective one.

 

DIMOCO, defining the A2P messaging future.

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DIMOCO guest blog post #3 of 4: Unleashing the optimal potential of carrier billing

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Carrier Billing continues to help realize revenues

By John BaRoss, Founder & President, FINCCLUDE Incorporated

In recent years, pioneering Carriers and their partners have continued to successfully advance how CB helps merchants and consumers by demonstrating again CB’s effectiveness as a billing option – now for ‘soft-physical’ goods like ticketing (i.e.: commuting/transportation via taxi, ferry, train, ferry, (etc.); sporting events and more). The benchmarks for incremental revenues, larger addressable markets, higher conversion rates, as well as stickier customers and goodwill windfalls again were achieved.

 

A majority of FinTech Payment Industry coverage focuses on marquee companies (Apple, Google, Samsung, etc.) as they strive to advance Mobile Payments/proximity payments. While specifics are proprietary, one important indication of marketplace feedback comes from Vodafone which has the flagship Carrier operated mobile money service: M-Pesa. In contrast to the attention garnered by proximity payments, a significant majority of M-Pesa transactions are remote as opposed to proximity, reinforcing the notion that CB’s focus dovetails with consumer/marketplace needs.

 

During a late May 2016 webinar by Ovum, CB was stated to have achieved $16.6B in 2015, projected to climb to $25.3B by 2020. Clearly $16.6B is huge, yet viewed through the lens of Carriers which had aggregate revenues of $1.02T in 2015, CB was less than 2% of the Carrier industry’s 2015 total. That said, there is growing appreciation in increasing numbers of Carrier C-suites that M-Commerce revenue is projected to be $1.3T by 2020, overtaking aggregate global carrier revenues in just a few years. The incremental revenue opportunities from M-Commerce via Carrier billing assets can be huge.

 

As CB understanding, acceptance and appreciation grows, regulators to carriers globally are now making moves to adjust regulations and modify carrier economic models to help unleash the optimal potential of CB for online merchants selling physical goods. Speaking with industry leaders involved in emerging CB-physical goods initiatives, two (parallel) value proposition thrusts were evident:

 

1) Harnesses the array of CB benefits (merchants realizing incremental revenue, reaching larger addressable markets, superior conversion rates, etc.). There is also an increased focus on CB helping advance financial inclusion – a differentiated strength of CB as its purpose since the beginning was to reach the unbanked.

2) A new twist for those familiar with carrier economic models because it involves margin advantages. Carriers have established a reputation for charging a premium for DCB. Merchants decide whether the incremental business via CB was worth CB’s premium (lower margin to merchant). As a variety of environmental factors have evolved over time, a trend is emerging with carriers becoming more competitive with their margins, and in some markets the CB margin is providing a better margin compared to certain alternative payment options.

 

More about FINCCLUDE: www.fincclude.org).

Happy to get your thoughts via twitter #DIMOCO or email to hello@dimoco.eu

Top 3 FINTECH Predictions

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Fintech Predictions

 

1. EVERY DIGITAL CHANNEL IS IMPORTANT: COMPANIES WILL INTEGRATE CARRIER BILLING ON MULTIPLE SCREENS.

 
2. EVERYONE WILL USE A DIGITAL PAYMENT METHOD: COMPANIES WILL BENEFIT FROM THE BROAD REACH OF CARRIER BILLING TO CHARGE THEIR ENTIRE TARGET GROUP.

 
3. MORE COMPANIES WILL REALIZE THE IMPORTANCE OF A SEAMLESS CHECK OUT PROCESS TO BOOST THEIR CONVERSION RATES.

 

 

DIMOCO Carrier Billing, defining the FINTECH future
Happy to get your thoughts via twitter #DIMOCO or email to hello@dimoco.eu

Top 3 A2P SMS Predictions

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A2P SMS Predictions

 

 

1. EVERY WEB PLATFORM WILL USE 2-FACTOR-AUTHENTICATION (2FA) SMS TO ADD AN ADDITIONAL SECURITY LAYER.
2. FROM CUSTOMER SERVICE TO CUSTOMER RETENTION – A2P SMS WILL BE USED THROUGH THE ENTIRE CUSTOMER LIFECYCLE.
3. MORE COMPANIES OF VARIOUS INDUSTRIES WILL RECOGNIZE THE IMPORTANCE OF A2P SMS AS AN UBIQUITOUS COMMUNICATION CHANNEL.

 

Happy to receive your thoughts via twitter #DIMOCO or email to hello@dimoco.eu

DIMOCO guest blog post #2 of 4: The reasons for the acceptance of carrier billing

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John BaRoss Fincclude

John BaRoss, Founder & President, FINCCLUDE Incorporated

 

 

What are some of the reasons for CB’s acceptance and successes globally?

*Incremental revenues: Even in the US, merchants utilizing CB were able to realize a 10%-30% lift in revenues by adding this payment option.

*The revenue lift in US was realized because larger addressable markets were reached.

*The unbanked (poor, rural, teens, etc.)

*Those concerned about having their credit card or bank account info hacked.

*The near ubiquitous billing reach of carriers.

*A vastly superior conversion rate of CB over credit card and other payment options (touted by at least some providers to be as much as 5 times higher).

 

 

Fundamentally there has been a logical progression of CB derived in large part to a complex array of environmental factors per nation spanning regulatory climate, penetration rates of traditional payment methods, taxes, priorities of carrier leadership, carrier margins, etc. Generally speaking, CB’s initial progression evolved from microtransactions thresholds, upmarket to higher price points as online merchants scaled the array of premium digital goods.  First-movers continued to pioneer with CB, next expanding into forms of non-digital services.  CB continued to meet or exceed key measures (incremental revenues, risk management, etc.).

 

 

The superior conversion rate of CB and the possibility of CB addressing new customers (even in countries with strong credit card penetration), continues to be realized by merchants.  Further, some carriers began to discover that they can realize a goodwill windfall from helping to bring financially excluded populations into the digital economy via CB, as well as other ‘Carrier Commerce’ offerings such as mobile money and much more.

 

 

About FINCCLUDE: Non-profit FINCCLUDE (Financial Inclusion Now, Carrier Commerce Leading a Ubiquitous Digital Economy) is downstream from AFI (Alliance for Financial Inclusion), uniquely exclusively serving the Carrier Commerce industry at the intersection of Financial Inclusion by helping to facilitate the cross-pollinating of financial inclusion success-knowledge to operational leaders in Carrier Commerce (when necessary, as a rapid response unit). www.fincclude.org).

 

 

What are your reasons that carrier billing is so well accepted?

Happy to receive your thoughts via twitter #DIMOCO or email to hello@dimoco.eu

With MVB – the next German region is covered by easy.GO, carrier billing available to purchase mobile tickets

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MVD region covered by easyGO

MVB launches easy.GO mobile phone app for timetable information and ticket purchase – a product of the DIMOCO company TAFmobile.

 

“Access to local public transport is made considerably easier by the mobile phone app. The app offers numerous advantages to both regular and new users of trains, trams and buses in Magdeburg and the surrounding area. You could say that the app means that I always have a timetable and ticket in my pocket,” says Thomas Webel, the Minister for Regional Development and Transport in the State of Saxony-Anhalt.

 

In addition to mobile tickets, the easy.GO app for bus and rail travel also supplies timetable information with real-time data and a location function. The price of the ticket is conveniently charged to the customer’s mobile phone invoice or deducted from the prepaid credit. There is no need for a credit card or registration.

 

Want to know more about TAFmobile and easy.GO? Please visit: www.tafmobile.de & www.myeasygo.de

DIMOCO trend update: DIMOCO Publishes Carrier Billing Market Report for Hungary

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Market Special_Hungary

DIMOCO released its latest report highlighting the key market trends and data for the Hungarian carrier billing market. With 10.79 million handsets and a smartphone penetration rate of 41.8 percent, Hungary offers significant carrier billing market potential to enhance customer monetization, increase conversion rates and enable payments on multiple screens.

 

Another recent report further illustrates the promise of the Hungarian market. According to the Price Waterhouse Coopers study “Entertainment and Media Outlook 2016-2020”, the Hungarian digital content space will continue to grow in four key segments: publishing, gaming, home video and music. The strongest growth is expected in the home video market citing a revenue increase of 2.8 percent from 10.8 million Euros in 2015 to and estimated 30.7 million Euros in 2020. As an already mature market, gaming will grow less in comparison to the other segments, but will achieve a revenue of 47.9 million Euros in 2020. Publishing and digital music are expecting similar growth rates of 1.8 percent between 2015 and 2020. While the publishing area, which includes eBooks, eMagazines, eNewspapers, will increase its digital sales from 19.9 million Euros in 2015 to 36.1 million Euros in 2020. Music is the smallest digital content segment, generating 8.1 million Euros by 2020.

 

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