Over 1.5 billion mobile subscribers worldwide will use carrier billing in the ongoing year without needing a credit card or bank account.
A new study from Juniper Research estimates that more than 1.5 billion mobile subscribers globally will use carrier billing to pay for digital content (apps, games, subscriptions), physical goods, and digital tickets directly through their mobile bill or prepaid balance this year.
Spending on carrier billing is expected to increase from $83 billion in 2025 to over $130 billion by 2029, showing strong market growth. The strongest growth may be expected in emerging markets like Africa, Latin America, and Southeast Asia, where mobile-first payment methods are essential while credit card usage is low or banking access is limited.
Carrier billing is a payment method that allows users to make purchases and charge their costs directly to their mobile phone bill or withdraw the funds from the prepaid balance. It is commonly used for buying digital content, such as apps, games, music, and streaming subscriptions or donating to charities. However, today, the method is increasingly integrated into e-commerce platforms, broadening its use beyond digital content and services.
The growth of this particular payment method that doesn’t require credit cards or other traditional banking tools is driven by growing smartphone penetration and demand for seamless digital payments. It has a few perceived benefits. To begin with, the transaction is completed instantly, with no need for extra authentication. It is often seen as a safer alternative to credit card payments since no financial details are shared.
Besides, carrier billing makes purchases easier and more inclusive. For some customers, having a single account for mobile services and all other purchases simplifies budgeting and reduces checkout times. Others find it hard to apply for traditional banking services due to numerous reasons. At the same time, they still use mobile carrier solutions for communication and will eagerly combine them with daily payments. This payment method has bigger potential in financially underserved regions, bridging the gap for users without traditional banking access who often rely on mobile money.
The report also highlights the main strategies that would help mobile carriers to maximize growth opportunities. Namely, telecom operators must go beyond being payment facilitators. Instead of only processing payments, these companies should position their networks as content distribution platforms to attract merchants.
Furthermore, simply implementing the ‘Check Out’ API – a new payment technology that came from the CAMARA project, which makes carrier billing more accessible and simpler across different networks – is not enough to benefit from the market growth.
The study suggests telecom operators should establish revenue-sharing agreements with digital content providers to directly integrate digital subscriptions and services into their mobile platforms, creating more value for users and new revenue streams for mobile network businesses. To do that, many operators will need to optimize their consumer platforms for seamless browsing, purchasing, and managing subscription experiences. Adding content management services (e.g., subscription bundles, offers, or exclusive deals) can boost the value proposition for both consumers and merchants. Finally, some telecom operators may consider educating consumers on the benefits and security of carrier billing, as many users may still be unfamiliar with this payment method.
