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?