mopay Study Reveals Consumers’ Spending Behavior Via Direct Carrier Billing

Results based on more than four-million transactions reveal that more than 50 percent of direct to carrier billing purchases were made by returning customers

MUNICH & PALO ALTO, Calif.--(BUSINESS WIRE)--mopay, a global leader in innovative payment solutions for online merchants, today announced the results of a customer study on consumers’ spending behavior using direct carrier billing. The study captures mobile transaction behavior for more than 300 mopay clients, based on a database of more than four-million transactions in over 80 countries, over the last three years. The results found that more than 50 percent of direct-to-carrier billing purchases were made by returning customers and revealed new findings about purchases made in the gaming and online dating industries.

“Based on our data it’s clear that consumers are embracing direct-to-carrier billing as a way to make payments quickly and easily for the online services they use every day”

The study showed that mobile merchants found direct-to-carrier billing very convenient for their customers, as purchasing processes could be easily completed on the mobile phone itself. Within three years, mobile payments traffic from direct-to-carrier billing grew by a factor of almost four-fold. Repeat users demonstrate that once consumers experience the ease and speed of mobile payments, they often select the method again for future purchases:

• With high conversion rates compared to other payment methods, mopay converts between 52 and 63 percent of all first-time customers within a six-month timeframe.
• mopay converted between 70 and 85 percent of its repeat users.
• Overall, 55 percent of returning consumers completed more than five purchases using mobile payments.

Over the course of the last three years, every one of mopay’s major mobile payments’ industries saw an increase in spending averages. The data also showed that spending averages differ significantly from industry to industry, ranging from below $2 USD for various mobile related services, to up to $10 USD and above for special interest social networking or entertainment offers.

“Based on our data it’s clear that consumers are embracing direct-to-carrier billing as a way to make payments quickly and easily for the online services they use every day,” said Kolja Reiss, managing director at mopay. “Our data shows that half of direct-to-carrier billing purchases were made by returning customers. This indicates that once consumers try our payment approach, they realize just how easy it is to use and continue to use the payment method. As more organizations adopt direct-to-carrier billing and consumers realize this option exists, we anticipate these numbers will continue to rise in the future.”

The study also revealed trends in two key industries:

Gaming & Social Networks: Since online gaming was the industry that first discovered mobile payments as a fast, effective and easy payment method for its users, it was no surprise that mobile payments’ traffic in online gaming is still high, accounting for more than half of mobile payments’ turnover and growing at a rate of almost 30 percent year-to-year. As social networks establish themselves not only as communication channels but gaming platforms, mobile payments in this industry increased by six fold in turnover within three years and now contributes to over five percent of all mobile payments’ transactions. Over the course of the last three years, every one of the major mobile payments’ industries saw an increase in spending average. From slight increases in online gaming (around 10 percent) and leveling off at around $4.50 USD, to drastic increases in social communities of almost 40 percent, passing $5 USD in 2011.

Online Dating: A solid showing over the last three years was made in online dating with direct-to-carrier billing spending ranking among the top-five industries with more than $6.50 USD and growing by 25 percent.

About mopay:

mopay is a global leader in innovative payment solutions for online merchants. mopay’s core platform enables merchants of virtual, digital and physical goods to bill charges directly to consumers’ cell phone and land line accounts. mopay operates in more than 80 countries across the globe, reaching more than 4.3 billion consumers. The company has a blue-chip customer base including major brands such as Bigpoint, Gameforge, Innogames, Sulake and Travian. mopay, part of the MindMatics group, has more than 100 employees at locations in the United States, Germany, Austria, the United Kingdom, China, Brazil, and Romania. For more information, visit www.mopay.com.