Telecom operators are emerging as key enablers of digital payments leveraging vast datasets and real-time customer behaviour insights.
Telcos are becoming payment gateways
Through direct carrier billing (DCB), content bundling, and seamless onboarding, telcos are embedding themselves deeper into everyday transactions.
This article explores how their infrastructure and reach are positioning them at the forefront of digital commerce.
Simplicity of payments
Telcos are uniquely positioned to simplify digital transactions by embedding payment options directly into mobile services.
This is especially evident in the gaming and entertainment sectors, where users can now pay through their mobile bill for subscriptions, in-game purchases, or casino gameplay.
By leveraging DCB, telcos eliminate the need for credit cards or e-wallets, allowing for fast, frictionless payments particularly valuable in markets where traditional banking access is limited.
In sectors like gaming, Direct Carrier Billing (DCB) allows users to charge in-game purchases directly to their mobile bills a model expected to exceed $100B globally by 2026, according to Juniper Research.
When it comes to streaming, telcos are already at the forefront of streamlining the payment process. Many telcos include streaming services in their mobile plans.
For example, providers such as Vodafone offer various streaming platforms, such as Disney and Hulu, as a part of their mobile subscription plans.
Their large user base can easily pay for mobile plans that include those streaming services, giving them access to premium content without having a separate payment for it. These mobile plans are customizable to fit the preferences of various users.
But what about app purchases? Many telcos now offer a service where users can gain access to premium apps with their mobile plans.
The apps can range from productivity apps such as Procreate to money lending apps that give users access to quick loans.
What does this mean for the digital landscape in the future?
How telcos are shaping the future
As technology improves, providers find new ways to accommodate the growing needs of users. One of those needs is personalisation.
With multiple subscriptions to pay, users are bound to miss some crucial payments. Telcos are stepping in to provide a central service for most users’ subscriptions.
Instead of managing multiple recurring charges, users can streamline payments by consolidating digital services into their telecom bill.
Telcos are increasingly acting as central aggregators of content and utility services, reducing user churn and improving payment consistency.
How will this shape the future? For one, telcos are already playing a central role in content, distribution, and bundling.
They have begun integrating multiple SVODs in their offerings to create comprehensive streaming bundles.
They are also investing in 5G and other newer technologies that promise low latency and high speed to enhance streaming experiences.
These technologies are currently supporting the growth of immersive and cloud gaming content.
In the future, these telcos may be able to integrate digital payment solutions into their services fully. This means facilitating the adoption of Central Bank digital currencies to give users easy access.
This has already been tested in third-world countries such as Ghana, where mobile providers provide money transfer services in the simplest way possible.
As regulatory bodies explore Central Bank Digital Currencies and global fintech expands, telcos are uniquely positioned to offer turnkey payment ecosystems especially in underserved markets.
Their transition from bandwidth providers to fintech enablers is already underway.
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