Reading Time: 3 minutes
For many of us, the prime way to purchase goods or digital content from our mobile devices has always been through our credit cards. However, mobile payments will begin to shift into a new direction, a direction where carrier billing is the primary method for funding purchases made through mobile. And that shift isn’t due to marketing hype, or from carrier efforts alone; it’s brought about by necessity. The truth is, a large portion of the world is unbanked. When I say unbanked, I mean people who do not have access to, or use financial services from banks. In short, they do not have credit cards. While we may have grown accustomed to banking and transacting through credit cards as a norm in the Western World, for developing nations in Asia, the same is not true. While many of them do not have bank accounts or use credit cards, most of them do have a mobile device. Asia makes up for a sizeable chunk in the world’s population pie. China for example is one of the largest untapped markets in the world. It’s a virtual honeypot of potential customers. It also happens to have the most number of mobile phones in use in the world with 1.24 billion devices in consumer hands. The USA is dwarfed in comparison with just over 330 million phones. This year alone, an estimated 443 million mobile phones is expected to be sold in China. It’s a growing market ripe for mobile commerce and payments to take root and thrive. And the numbers are showing it. 2013 saw mobile payments grow a staggering 800% in China over 2012, totaling around $212 billion in 2013. That growth is fuelled by large consumer adoption. To compare once again to the USA, 55% of China’s internet users have used mobile payments compared to just 19% in the USA and 69% made purchases through their mobile device compared to 46% in the USA. And that’s just for China. When it comes to mobile payments, Asia will be the major player in driving adoption and
growth, and carrier billing will play a major role. With a large number of unbanked and a huge number of eager mobile customers, carrier billing will be one of the best ways to let mobile users transact using their mobile devices. Because they already have a mobile device and they are already paying for service on that mobile device, customers will already be familiar with and comfortable with transacting through their carriers. Elsewhere in the world, mobile payment funding through carrier billing is also taking hold. In many countries you can now pay for apps and make in-app purchases billed to your carrier’s bill for example. App stores such as the Apple App Store and Google Play are all embracing carrier billing as a way for customers to pay for their digital media. Mobile payments taking root in Asia will be a major milestone in global adoption and usage. Because Asia already has an active mobile payments and commerce landscape, new products can be tested accelerating innovation in the process. Carrier billing will be a major cornerstone for mobile payments in the region, and the world will likely follow suite. Ilan Oosting is a veteran of the telecommunications industry having spent a decade in one of Australia’s leading Telcos before starting JMango. Quickly understanding the potential of the technology created by Duc Ngo, Ilan gathered a small group of angel investors in early 2008 and set about transforming the concept into a sustainable global business. As CEO of JMango360, Ilan is responsible for setting the overall strategic direction for the company and securing alliances and partnerships with telecom operators, distribution partners and content providers around the world. Ilan’s drive
and passion is second to none. He is impulsive, enthusiastic, dedicated, extroverted and loyal. He is equally as passionate about pushing mobile technology to the forefront of everyone’s daily lives by making JMango360 the first true mobile app builder that makes mobile simple for everyone.