US & China to Dominate Global Carrier Billing Revenue in 2025

As operators continue to struggle to monetise consumer services such as messaging and 5G, carrier billing will provide operators with the opportunity to differentiate their services in a competitive market by offering a unique payment solution to their subscribers. The different types of carrier billing mechanisms include:

• Mobile-terminated SMS Billing: Customers are billed following receipt of a text from a merchant after opting in through sending an SMS code to the merchant. 
• Mobile-originated SMS Billing: Customers are billed after sending a premium SMS to a short code. This type of payment was popular when mobile payments first become mainstream. It is still used in some regions for voting in TV shows, donating to charities, and subscribing to premium services.
• Direct Carrier Billing: Users are required to send or receive messages to make payments. Payments can be made through tablets and computers, as well as mobile phones. Billing a user directly in this way transforms the service into a money service, offering over and above the usual carrier service, and often requires the involvement from central banks in the market in which carriers operate. The introduction of additional layers of complexity due to regulation means that an MNO may not be able to offer carrier billing in all markets. 
• WAP (Wireless Application Protocol): Also referred to as mobile airtime transfer, is a type of mobile payment made through a WAP-enabled mobile browser. Using WAP enables users to make one-click purchases directly from their mobile phone. Mobile airtime transfer is used in markets that have distribution networks for P2P (Person-to-Person) payments, allowing users to pay by transferring airtime to another user. Specific markets include the US (Venmo), China (WeChat), India (Paytm), and Africa (Airtel Money).

Specifically, these different types of carrier billing mechanisms will benefit different market segments. For example, as mentioned above, SMS billing will benefit niche markets where smaller, one-off payments are often used, including for voting in contests, participating in lotteries, or subscribing to specific content including mobile ringtones. However, DCB will have significant impact in markets including digital content. Whilst a benefit for all types of carrier billing mechanisms, it is anticipated that DCB specifically will have a significant impact on the future carrier billing market.

With this in mind, Juniper Research forecasts that the total operator-billed revenue from carrier billing purchases will surpass $14 billion in 2029, rising from $10 billion in 2025; representing a total grwoth of 47% over the forecast period.

Source: Global Carrier Billing Market 2024-2029

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