DIMOCO Analyzes Spanish Mobile Payment Market

Sep 16, 2014 8:30 AM PST

BRUNN AN GEBIRGE, Austria — DIMOCO has released its analysis of the Spanish mobile payment market.

The company said that with 50 million mobile subscribers, a 54.5 percent smartphone penetration rate, and the given opportunities in billing digital content via the mobile network operators’ bill, digital content providers can take advantage of an easy payment method with an enormous reach.

Direct carrier billing for mobile and web one-off, as well as subscription services for digital content up to a tariff of 30 euros is available from DIMOCO.

According to Pricewaterhouse Coopers (PwC), the Spanish digital content publishing, video, music and games sector will increase dramatically over the next few years.

“We are one of the leading mobile operator payment and messaging providers in Europe. Analyzing the markets to show digital content providers their enormous potential was just another logical step for us,” said Gerald Tauchner, DIMOCO CEO and President.

He added, “In Spain we already provide direct carrier billing with Orange, Movistar and Vodafone. What else could be more attractive for content providers if they want to increase their conversion rate?”

DIMOCO explained that while direct carrier billing on the mobile channel can be done with a few clicks and a smooth payment process, direct carrier billing on the web channel can be processed via an easy mobile TAN opt-in. To confirm the payment transaction, a unique and time-limited pin code is sent to the consumers’ cell phones and typed in online. Integrating the cell phone as an additional channel in the web payment process lets business customers take advantage of a two-way-mechanism.

The digital content market in Spain will increase in all segments, the company predicted.

“Like everywhere in Europe, Spain is also seeing enormous development in the digital content segment. Therefore, direct carrier billing gives digital content providers an ideal payment mechanism to reach a wide target group and to increase their sales revenues,” Tauchner said.

PwC believes all digital content segments in Spain will grow. The firm’s “Entertainment and Media Outlook 2014 – 2018” publication gives insights into the development of the publishing, video, music and gaming segment. The publishing sector is divided into e-Books, e-Newspapers and e-Magazines and shows an increase from $196 million in 2012 to a projected $688 million in 2017. The video market segment, which includes streaming services and TV subscriptions, will also see an increase from $130 million in 2013 up to $286 million in 2017. However, the biggest digital content segment in Spain is the gaming industry. Encompassing digital console games, online games as well as digital PC games and mobile games, it will grow from $493 million in 2012 up to $765 million in 2017. The digital music segment will be grow from $73 million in 2012 to $80 million in 2017; at the same time, and as a logical consequence, the physical music segment will decrease from $128 million (2012) to $39 million (2017).

This reports marks DIMOCO’s fourth analysis of the global mobile operator payment market.

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