The World of Mobile Payments in 2015

141118 Guest.Christoph Enzinger


2014 is nearing its end and again a lot has happened in the digital space within just 12 short months, particularly in the area of payment. Several new approaches towards mobile money and digital payment have taken to the headlines – most famously Apple with its mobile wallet solution Apple Pay, but also others like Amazon or Facebook had at least a brief appearance in the spotlight. The concept of using your mobile phone for payment is certainly gaining momentum and forecasts on the potential of this new business area are eye-watering (depending on the source, 2015 forecasts on mobile payment transaction values are between USD 670 billion or USD 1 trillion).


So, it’s now about time to raise the critical question: What will 2015 for mobile payment truly bring?
Firstly, we need to be aware that mobile payment is just an umbrella term, which covers payment methods across different sales channels (from digital to “real world” customer touch points) as well as various billing methods (e.g. direct carrier billing or prepaid), which have just as much in common as a credit card has with cash payments. We also should not expect to see mobile payment adoption as a global phenomenon which will happen everywhere simultaneously, as it will largely depend on prevailing circumstances. Financial transactions are a sensitive topic for consumers without habitual changes overnight.
Still, mobile payment brings many benefits to our everyday-life (mainly centered on convenience), so it is not a question IF, but WHEN mobile payments will finally enter the mainstream of consumer behavior.
Due to a series of current trends, 2015 looks more than promising to become the year of mobile payments:


User behavior is changing quickly. Google is predicting that in 2015 mobile devices will already enable two thirds of purchases and will lay the ground for more targeted, personalized offers and as a consequence for an increase in mobile payment. Google might have some business interest that this prediction comes true (with Android dominating the market for mobile operating systems), but also independent sources confirm that consumers are scaling back on the time they spend on their computers in favor of their mobile devices.


Direct Carrier Billing is still an area of high growth, with DCB service providers venturing into the field of physical-goods-billing. For years now, direct carrier billing transaction values have been growing steadily and DCB is now available from most operators across the globe. The benefits of this payment method for digital stores are obvious, as it is even available to customers who don’t own a credit card or even a bank account. Recently we also saw DCB service providers setting up pilots for the billing of physical goods, for example in the United Kingdom or Singapore. There are still a few hurdles to overcome (high operator fees to name one), but this is certainly an area to watch.


Apple Pay – here to stay? Apple iPay is already widely available to consumers on an Apple device running iOS 6.0+. At least in the US, Apple managed to get a few recognized brands to support the app from launch, e.g. McDonald’s, Subway, Macy’s, Disney, and others, and it also secured partnerships with three of the four major card issuers. So far, Apple Pay is certainly one of the most promising mobile NFC solutions, however it still has a few challenges to solve before it reaches large market adoption (one of them being to further grow its partner network outside the USA). Still, Apple Pay will certainly be a hot topic in 2015 too.


Internet and financial giants alike are putting all their weight behind mobile payment. While pro-active consumer demand for NFC solutions might still be limited, you certainly won’t need to worry about the supply side. The majority of traditional payment providers and also digital over-the-top-players have mobile payment solutions high up on their agenda (for example the recent divorce of eBay and PayPal is mainly an effort to focus resources and to capture more of the digial and mobile payments market).


Mobile Money in the developing world is gaining lots of traction. Mobile financial services are popular in large parts of Africa due to the lower penetration of bank accounts. The most renowned existing service is probably M-Pesa, which is now live in 7 countries and has 16.8 million active users in its country of origin, Kenya, alone. Recent months saw a number of further co-operations between banks and operators emerging, with the plan to launch further financial services in the near feature.


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Expect mobile payments to feature big at Mobile World Congress 2015 (again). Already in 2014 we saw several financial heavy-weights like MasterCard or VISA announcing their next steps in the mobile payments ecosystem. In March it will be interesting to find out which new initiatives, co-operations and rivalries emerged over the last few months. Of course we will also be on sight, and will keep you updated about the latest news on Twitter @DIMOCO (you will also be able to visit us at our DIMOCO stand, to discuss with us the latest trends in the mobile payments industry).



Christoph Enzinger is Product Manager for Mobile Payments and Direct Carrier Billing at DIMOCO. In previous roles he was working as Senior Marketing and Product Manager at Vodafone Group and the GSMA, where he was engaging in and organizing work groups for operators and players from the authentication and payments ecosystem.

DIMOCO Germany Direct Carrier Billing Special

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After Spain, Poland, Italy and France we present our fifth direct carrier billing special. As one of the biggest economies in Europe and with a mobile handset penetration of 119.9% in comparison to 35.7% credit card owners, Germany shows a huge potential in billing digital content via direct carrier billing. According to the white paper on direct carrier billing in Europe, published by DIMOCO in collaboration with market research partner Juniper Research, conversion rates up to 70 percent at the first transaction and 60 percent at the second transaction can be achieved with direct carrier billing.


115.2 million mobile subscribers are shared among the four big German mobile network operators Telefonica Germany (O2 Brand, market share 16.6%), eplus Group (market share 21.9%), Telekom Germany (33.7% market share) and Vodafone (market share 27.8%). As the worldwide trend shows, the smartphone penetration rate is also increasing in Germany and currently counts 33.9% compared to 66.1% legacy handsets available on the market.


The Price Waterhouse Coopers “Entertainment and Media Outlook 2014 – 2018” publication confirms the development in the digital content industry: The ePublishing segment, the area with the biggest growth, will grow from 655 million USD in 2012 to 2,287 million USD revenue in 2017. The home video market is set to grow from 162 million USD revenue in 2012 to 674 million USD in 2017, and the eMusic market from 387 million USD in 2012 to 620 million USD revenue in 2017. Another huge market is the eGames segment. The revenue growth rate shows a development from 889 million USD in 2012 to 1,589 million USD in 2017.


To tap into this enormous digital content potential, DIMOCO offers companies a variety of mobile payment products. “As DIMOCO we provide the technical hub between all the mobile network operators on the one hand and the business customers on the other hand. The main advantage for digital content providers is that they only need to integrate one connection and technical interface into their infrastructure”, explains Tauchner.


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You can download the poster here


How our virtual and digital life influences our mobile payment and messaging habits

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Producing, consuming, using, sharing – it’s all about digital and virtual content and we are speaking about  music, software, books, newspapers, pictures, videos, chats, dating services and many, many more contents and services on the World Wide Web. It became our daily digital and virtual life to use smartphone, tablets and co. as our new media channels and as if we had never lived without them.
Juniper Research confirms that more than 130 million Western European smartphone owners accessed social media sites on their handsets in 2012; Facebook alone has more than 870 million users worldwide on mobile handsets and tablets, while Twitter has around 175 million. According to Ooyala, more than one-third of tablet viewing time is used to watch content of more than an hour in length while Adobe reports that average session time – for all tablet content – is 24 minutes, versus 13 minutes on a smartphone.


But screens are not only used separately. People are media meshing – performing a second media activity related to their TV viewing (posting on social media about the TV programme) and media stacking – performing an unrelated media activity (playing games on their tablets) while watching TV. According to OFCOM’s 2013 Communications Market Report, 25% of UK adults now media mesh and 49% media stack; amongst tablet owners, 81% media mesh and/or media stack.
Could you imagine living without a smartphone today?



You can read the whole article here

Mission Europe completed with Turkey

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From now on, web content can easily be billed via direct carrier billing at Turkcell, Vodafone and AVEA in Turkey.


Profiting from a mobile handset penetration of 91.1 percent, web content providers profit from maximizing their sales revenue while offering their digital goods online and reaching a potential of app. 70 million mobile subscribers with this innovative billing method.

“Putting Turkey on our coverage map completes our mission to be the leading European direct carrier billing partner”, says Gerald Tauchner, DIMOCO Co-Founder and CEO.