By Andrew Kaufmann, Operator Relationship Manager, Mobile Billing & Payments, MACH and Cornelia de Vos, Inside Sales Account Manager, MACH Mobile Messaging
Direct Operator Billing ticks all the boxes. It is by far the easiest payment mechanism for the end user; it has the highest conversion rate for the online retailer and is also a quick and convenient for the developer to implement.
That’s the good news that we, and our colleague Daniel Dinnebier, addressed to about 300 participants at Apps Day, a German mini-fair for mobile application developers and purchasers that took place this July in Cologne.
How do you explain Direct Operator Billing to someone who has never heard about it? Surprisingly, most of the Apps Day participants didn’t know that such a solution even existed. For us, Direct Operator Billing boils down to three points:
- Enabling the payment for apps and in-app services through the mobile phone bill
- Enabling the payment for apps and in-app services through mobile prepaid credit
- Removing the requirement for credit card data, passwords, or other authentication medium for the purchase of apps
This naturally caught the attention of the developers at the show. That the seamless, one-click billing process enabled by Direct Operator Billing will dramatically increase the sales conversion rate seemed clear to the developers we spoke to. Indeed, this fact is gaining wider industry acceptance – according to Nokia’s own figures, direct operator billing is 13x more effective than credit card payment methods. At Apps Day many of the developers told us that they see Direct Operator Billing as the first step towards a future of secure and highly convenient mobile marketplaces of all forms, shapes and sizes and I couldn’t agree more.
Andrew Kaufmann’s presentation seemed to generate some real buzz and we were approached by many developers keen to learn more after the show. For use the real take-aways were just how large the revenue potential for mobile apps is (growing to nearly 60,000 millions of dollars by 2014, according to Gartner) and just how crucial Direct Operator Billing will be in enabling this growth. All in all Apps Day was yet another step forward for Direct Operator Billing, the message is spreading and most of the people we spoke to liked what they heard.