A new study from Juniper Research has found that the value of end-user spend on digital goods via carrier billing will exceed $74 billion by 2026; up from $54 billion in 2022. This growth of over 37% reflects the increasing relevance of carrier billing as an option for digital commerce spend. Direct carrier billing involves users charging payments for digital and physical goods to their mobile phone bill.
The new research, Carrier Billing: Opportunities, Challenges & Market Forecasts 2022-2026, found that gaming spend will account for just over 50% of digital goods spend via carrier billing in 2026. This dominance will be driven by accelerating monetisation strategies, including 5G cloud gaming and gaming subscription models. Carrier billing vendors must prioritise partnerships with leading gaming platforms, including emerging cloud gaming players, in order to best serve this market.
For more insights, download the free whitepaper: Carrier Billing ~ Leveraging the 5G Opportunity
Digital Goods – The $11 Billion Carrier Billing Opportunity
The research found that operator-billed carrier billing revenue attributable to digital goods will reach $11 billion globally in 2026; up from $8 billion in 2022. The research identified the high costs per transaction as a limiting factor for carrier billing payments versus card and digital wallet payments, but identified operator reach as being a compelling factor.
Research co-author Nick Maynard explained: “In the face of a rapidly accelerating digital transformation within payments, operators can be in the driver’s seat for reaching potential users, given their access to existing subscribers. Leveraging this subscription base is critical to accessing this potential revenue source.”
Remote Physical Goods Payments – The High-growth Opportunity
The research found that physical goods spend is rising much faster in carrier billing than for digital goods; at a rate of 270% over the next 4 years. While this market is growing from a lower user base, it does represent a significant new opportunity, with spend set to exceed $13 billion globally in 2026. The report recommends targeting cross-border eCommerce vendors for partnerships, given their need to quickly onboard localised payment methods.
Financial Inclusion: ZirooPay Targets Deeper Mobile POS Penetration in Nigeria
Nigeria’s retail Point-of-Sale solution provider, ZirooPay has embarked on an aggressive drive to deepen the penetration of its unique mobile POS assets.
In a bid to boost market share while driving financial inclusion by penetrating the underbanked market through its proprietary mobile POS technology, Nigeria’s retail Point-of-Sale solution provider, ZirooPay has embarked on an aggressive drive to deepen the penetration of its unique mobile POS assets.
Over the next months, ZirooPay hopes to grow its network of mobile POS around Nigeria by adding no fewer than 20,000 mobile POS, on the heels of a successful funding round, which has positioned it to tap into the growing opportunities in Africa’s retail sector.
Recall that ZirooPay is reputed for a patent of a unique and efficient mobile POS technology that enables small businesses to process card payments in real-time, even when there is no internet/data connection, strategically positioning it to drive financial inclusion in a country that has achieved only 63 per cent financial inclusion and 33.6 per cent of broadband penetration.
ZirooPay’s payments solution is fast, simple and reliable, delivering a 95 per cent transaction success rate for POS transactions compared to the industry’s average of 25 – 50 per cent. The solution leverages its unique and patented internet-free technology, to enable SMEs (across the retail, agency banking, hospitality and services sectors) to process in-person payments, track their sales, and manage their businesses from their mobile devices.
Beyond payments, ZirooPay also provides merchants with automated sales history, sales analytics, and inventory tracking to help them monitor and manage their businesses more efficiently. ZirooPay’s superior transaction success rate and the integrated nature of its service stand it out from the competition.
The payment provider, which started operations in Nigeria in 2019, has organically grown to 15,000 merchants processing over $500m in 10m transactions and looks to replicate this success across Africa.
Speaking recently, the Chief Executive Officer, CEO of ZirooPay, Omoniyi Olawale said this is part of several initiatives aimed at empowering more SMEs to take effective control of their businesses, adding that the firm is committed to deepening access to ZirooPay’s invaluable payment services for all sizes of retail business both in rural and urban centres in Africa.
He explained that innovative payment solutions such as ZirooPay will remain an imperative as wholesale and retail sectors continue to dominate Africa’s contribution to its GDP, even as population growth and rapid urbanisation continue to drive consumption across the continent.
He said, “ZirooPay has set out to build an operating system for retail in Africa by providing solutions that not only drive financial inclusion but also support the payment infrastructure needed for retail to thrive on the continent. Lack of reliable payment technology for the continent remains one of the major challenges that has hindered trade tremendously and ZirooPay Mobile POS solution will address this challenge.”
According to Omoniyi, while it is still early days for payments in Africa, ZirooPay understands the peculiarities of the continent’s infrastructure challenges and would continue to advance similar innovative solutions that will address the payment challenge on the continent on a sustainable basis.
GTCO’s HabariPay Limited Receives Final Approval from CBN
The management of Guaranty Trust Holding Company Plc (GTCO Plc) announced the bank’s payment subsidiary, HabariPay Limited has received final approval from the Central Bank of Nigeria (CBN).
The lender announced in its latest statement signed by Erhi Obebeduo, Group Company Secretary and General Counsel, and obtained by Investors King.
According to the bank, HabariPay will be used to expand GTCO Plc’s services to underserved markets and deepen CBN efforts at expanding the number of people in the financial system. This, GTCO said would contribute to the resilience of the global payment ecosystem.
Commenting on the new payment subsidiary, Segun Agbaje, Group Chief Executive Officer, GTCO, said payments are central to the development of financial services globally and represent a key growth area for the group.
“GTCO Plc has been at the forefront of delivering cutting-edge innovative solutions with its banking franchise and would leverage this capacity to transform the evolving payment space,” he said.
“With HabariPay, we have successfully created another pathway towards enhancing the service experience for our customers and creating more value for our stakeholders.”
“Our vision is an Africa where every payment is digital, and we hope to achieve this by increasingly leveraging technology to improve access to financial services for individuals and empower businesses across Africa with the right digital tools to thrive.”
PayPal Ventures’ First Layer 1 Investment has Been Revealed as Aptos.
In March, Aptos Labs announced a $200 million investment round, and now the company has confirmed that PayPal was one of the investors.
PayPal Ventures was one of the investors in Aptos Labs’ $200 million funding round confirmed in March, according to Coin Desk. Aptos Labs is bringing Facebook’s star-crossed Diem blockchain to life. PayPal Ventures’ first investment in a base layer product was made with this investment.
In a statement, PayPal Ventures investment partner Amman Bhasin stated, “We trust in the work that the Aptos Labs team is undertaking to establish a safe and scalable layer 1 blockchain.”
“The Aptos blockchain is constructed in such a way that it is both conducive to creating new rails and enticing to corporate clients and crypto-native developers, with the promise of greater dependability and security, faster transactions, and cheaper costs.”
PayPal (PYPL) was an early supporter of Libra, pledging at least $10 million to join the Libra Consortium. Following outrage on Capitol Hill, the corporation swiftly withdrew. Andreessen Horowitz (a16z) led the Aptos funding round, which included Multi coin Capital, a16z alum Katie Haun, Three Arrows Capital, Para Fi Capital, and Coinbase Ventures, among others. The involvement of PayPal Ventures was not disclosed in the initial statement.
Aptos is composed of the Diem (previously Libra) blockchain’s original creators, researchers, designers, and constructors. The blockchain was announced as the backbone of a stablecoin project by Meta Platforms (previously Facebook) in 2019, but the project never got off the ground due to legal difficulties.
Meta announced the shutdown of Diem earlier this year, and Silver gate Bank purchased the technology and other assets. Much of the work done by Diem-affiliated teams, on the other hand, was done under open-source licenses, which means that the intellectual property is free to use.
Two months ago, Aptos’ developer test net became live. The main net is expected to be released in the third quarter.
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