A smartphone is your best mate. But only if it is loaded with apps and games. A smartphone is not smart without apps; instead, it’s just a phone. Most of the apps are available for free, but the outstanding ones are not. You have to buy the app from the developers. Most of the app developers utilize digital modes to receive their payments. But now, developers are moving towards airtime payments.
Airtime, better known as Carrier Billing, is a mode of payment in which the users can shop through online sale/ purchase through their mobile credit. Users don’t have to pay through credit cards or digital wallets. In fact, airtime utilizes the cell phone carrier company services to transfer the payments. Carrier billing is further classified into several modes like SMS-based payments, Mobile web payments, and Direct Operator Billing. The one widely used is the Direct Operator Billing.
Developers should utilize airtime to provide ease and convenience to their user. Here are a few reasons, highlighting the importance of using carrier billings to receive payments for apps.
1. Ease Of Access
Airtime or direct carrier billing provides you a convenient mode to receive the payments for your apps. It is the best payment solution in countries where the use of credit cards has not prevailed yet. It has been observed that people are more willing to pay via airtime as compared to credit cards. A simple SMS or codeis enough to process the payment. The users don’t need to go through the lengthy and tiresome procedures that are required for credit card payments.
Users want swift solutions, avoiding the search for the credit cards in their pockets. Some people are also allergic to bank accounts because they hate visiting ATMs and signing checks. So, a convenient payment mode like airtime can provide access to a greater number of users. In a struggle to go cashless, airtime can contribute effectively to meet the goals.
App developers should move to airtime as most of the people bear mobile phones as compared to the credit cards or bank accounts. According to some sources, the world pollution is almost 7.14 billion of which 6.8 billion population possesses a cell phone; only 3.5 billion people have bank accounts and 2.15 billion utilize credit cards.
Direct Carrier Billing provides a secure channel to process the payments. Many payment gateway solutions have entered the race, and it has raised concerns of public regarding security. Users are not sure whether to compromise on the reliability of a channel or not. This keeps most of the users from buying apps.
In contrast, airtime negates these concerns as the user has already been utilizing the services of the company. So you can receive the payments directly from the mobile phone company that deducts minute transaction charges. You don’t need to worry whether you will receive the payments or not. The carrier provider takes headache at your part to enhance your app/game purchases.
Users also trust carrier billing as the carrier provider already has the necessary info regarding the user. So there is no chance of leakage or misuse of one’s personal info. This trust makes them move towards airtime payment solution.
3. 1-Step Solution
Yes! It is a one-step solution to your app sale/ purchase. The credit cards utilize long and annoying steps to process the payments. With airtime, one code or an SMS does it all. The user just provides his mobile number and PIN, and the payment is processed. The developer, on the other hand, receives a text verifying the success of money transfer.
The transfer takes even less than 10 seconds. So you don’t need to have an account at PayPal or Payza that need days for processing the transfer. You don’t need to log in to your accounts or provide details for your sales. All you need is to provide your phone or account number and have your money. It’s a very fast and tension-free mode to receive your payments.
Following the model of airtime for rapid payments, some other companies have jumped in. These companies provide apps for payment solutions. It is an integration of direct carrier billing and digital wallets.
4. Enhanced Conversion Rate
Direct carrier billing offers better conversion rates (conversion rate is the proportion of the number of visitors to the success of goal) in contrast to credit cards or e-wallets. According to an analysis conducted by Analysys Mason, airtime provides a 5 fold increase in the conversion rate for the app developers. Some people also report ten times higher conversion rates.
Carrier billing is less prone to ambiguities. It ensures that every payment is made successfully. As the buying process gets simpler, more potential buyers are created. So providing a convenient and swift payment solution would enhance the sale of your apps and games.
5. Minimized Taxes
E-wallets and credit cards impose heavy transaction charges on the payee and the receiver. At first, the users have to pay for the app at the app store, followed by the money transfer fees. Moreover, some transaction amount is also deducted, and the receiver has merely something in hand. These charges have created a sense of dissatisfaction among the consumers. Most of the users find themselves comfortable paying through cash.
Providing users a flexible payment mode with minimized taxes will motivate them to use online payment channels. In return, it will enhance the apps’ purchase.
A World Where Companies Are Moving Towards Carrier Billing
Vodafone has recently introduced Charge to Bill service. It enables the users to pay for the apps at the Google Play Store through their mobile phone bills. One doesn’t need to worry about his pocket. The entire purchases are recorded, and the users can pay for them at the end of the month. Content up to worth £30can be bought this way. In this regard, David James, Head of Commercial Marketing Vodafone, said that airtime is a better, rapid and reliable method to pay for the digital content through mobile phones.
This Is How Asia Is Building A Cashless Society
Google supports direct carrier billing in almost 40 countries. Google Play accepts payments through airtime in the US, Sweden, Russia, Czech Republic and Canada. Google claims that it has maximized its sales up to 300% after incorporating airtime channel. Now, even Skype users can put their services fee on the mobile phone bills.
Microsoft had signed a deal with Boku to provide airtime payment solution for the purchase of items like tablets, PCs, etc. from Windows Store. In Indonesia, airtime contributes for 83% of the purchases made from Windows Phone Store. Apple has also entered the race and is providing its services in Germany and Russia. Some stats released in 2013 revealed that in Europe, the utilization for carrier billing was almost 27% and in Asia, it was 30%.
Airtime has been bridging the distances between the users and the app developers. Smooth and swift payment solution is increasing the number of potential buyers. Integration of carrier billing with other online payment modes will contribute towards a better economy.
Do comment about the reason you think is the most important to enhance the sale and purchase of apps. Also, let us know that how airtime has been helping you to increase your growth.