Carrier Billing: the payment method for today’s mobile economy

Clemens Leitner, CEO, DIMOCO Payments

Marcus Rügge, Vice President Partnering and Value Added Services, Telekom Deutschland

 

Carrier billing (CB for short) is a mobile payment method that allows users to pay for purchases directly via a prepaid SIM card or cell phone bill. In Germany, this service is called ‘Zahl einfach per Handyrechnung’. It can be used for a range of services, from charging electric vehicles to online shopping. However, not all retailers and companies in Germany currently offer CB.

 

What exactly is carrier billing, and why are retailers increasingly using it?

 

CB is a mobile payment method that is used worldwide and allows customers to pay for purchases via the bill from their mobile provider. In Germany, the mobile phone providers Telekom, Telefónica, Vodafone, and freenet offer this payment method to their customers under the name “Zahl einfach per Handyrechnung”. A major advantage is the customer reach of the German mobile network operators.

 

A solution for better payment options

 

While digital payment systems are modern, they can still be inconvenient in certain situations. For example, charging electric vehicles (EV) often requires special cards or registering with multiple charging providers. This lengthy process can be frustrating, especially for new EV drivers. This is where mobile billing offers a significant improvement: users can simply plug in their vehicle, select the “Zahl einfach per Handyrechnung” payment method, and charge their vehicle without the need for additional apps or registration. This type of seamless transaction is exactly what today’s fast-paced world demands, making carrier billing an ideal payment solution for businesses and customers alike.

 

How does billing with the mobile phone provider work?

 

From a technical point of view, carrier billing is very easy to integrate into the retailer’s application. The technical effort involved is comparable to the integration of other payment methods. Interested parties contact DIMOCO either via web, email, or phone call, and they accompany the customers through onboarding or go-live.

 

The purchases that customers have paid via “Zahl einfach per Handyrechnung” are charged to the monthly cell phone bill by the mobile phone provider or deducted from the prepaid credit. Merchants receive their payouts for the services and products offered directly from DIMOCO.

 

A growing payment option in Germany and beyond

 

Carrier billing is becoming increasingly popular, not only in Germany but throughout Europe.

 

One of the main reasons why retailers opt for billing via mobile phone providers is security. The customer is clearly identified via their mobile phone number. This eliminates the need to manually enter sensitive bank or credit card details, and the customer is guided through the purchase process quickly and easily.

 

Thanks to continuous development, carrier billing will soon become a standard payment option, especially for those looking for a fast and secure alternative to conventional payment methods. 

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