Are there different kinds of Mobile Billing?

Mobile Billing isn’t limited to one specific type or format. There are indeed different ways to use a phone to pay for goods or receive a statement. Today we will look at the difference between direct carrier billing and premium SMS.

Premium SMS is the one that most people are familiar with. This is when you use your

Billing do have a few drawbacks. For example you have no guarantee of your SMS reaching the provider, nor the product reaching you. Some customers aren’t comfortable with the process because there is a possibility of one or two things going awry. You might get charged the wrong amount or accidently opt into a monthly subscription rather than a once-off purchase. People will rarely use this method for large purchases because of these problems.

Direct carrier billing allows you to purchase now and pay later, almost like a credit card. The cost of your purchase is added to your mobile bill, so at the end of the month, you only have to pay your mobile service provider. This very convenient and often used for gambling applications. The biggest pitfall of this type of Mobile Billing is that the sheer convenience makes it easy for people to land themselves in debt. On the other hand, it is easier to dispute these transactions and protect yourself against fraud, because you should have it all on record.

A big advantage of both premium SMS and direct carrier billing, is that it is available for all mobile users. It doesn’t matter what type of phone you have or which network provider you belong to.

In the near future, Mobile Billing might very well replace cash and credit card payments completely.

Herman Cremer
A seasoned professional with 20 years of experience in digital & mobile solutions and advertising.

 

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