Carrier billing has come a long way in the last decade or so. What was once a niche payment method for digital content has exploded into a multi-billion-dollar global industry. Think about it – frictionless, mobile-first payments that don’t require credit cards? It’s a no-brainer for consumers, and the numbers prove it. By the end of 2025 it’s predicated that one in five mobile subscribers will use Direct Carrier Billing (DCB). That’s an incredible opportunity for mobile network operators (MNOs) – and a wake-up call for payment aggregators.
Carrier billing is no longer just an add-on revenue stream for telcos; it’s a core business opportunity. Over the next five years, operator revenue from carrier billing transactions is projected to jump from $9.3 billion in 2024 to nearly $15 billion in 2029 – a 59% increase. That’s a lot of cash moving through mobile networks. And here’s the kicker: operators are waking up to the fact that they might not need third-party aggregators to get their share.
The Big Shift: MNOs Taking Control
I’ve been in this space for years, and I’ve seen how payment aggregators built their role by bridging the gap between CSPs (content service providers) and network operators. But let’s be honest – things are changing fast. With standardised APIs, operators can now integrate directly with CSPs and major brands, cutting out the middleman and increasing their revenue share.
And they’re doing it. Brands are already forming direct partnerships with telcos, leaving traditional payment aggregators scrambling to justify their place in the value chain. Standardised APIs are making this transition easier, slashing integration time and boosting scalability.
For now, aggregators still play a role in markets where API standardisation is limited – especially in Africa and the Middle East. But let’s be real: technology moves fast. If aggregators don’t evolve, they risk becoming obsolete.
The Aggregator Survival Guide
So, what’s next for aggregators? You either adapt and stay indispensable or get left behind. The good news? There’s still huge potential for those who redefine their role. Here’s how:
1. Own Risk Management
If network operators are working directly with CSPs, they’re taking on way more risk – fraud, regulatory compliance, and consumer protection. That’s where aggregators can step in. Offering fraud prevention, compliance oversight, and dispute resolution makes you more than just a payment processor; it makes you a strategic partner.
2. Streamline Onboarding & Service Monitoring
Operators don’t have time to manually vet and monitor every CSP. Aggregators can take on the heavy lifting, ensuring onboarding, ad flow monitoring, and compliance reporting happen seamlessly.
3. Go Beyond Payments
Why stop at transaction processing? Aggregators can differentiate by adding value with KYC solutions, consent verification, and enhanced customer engagement tools. Give operators something they can’t easily replicate in-house.
4. Master Fraud Prevention
Fraud is one of the biggest risks in mobile payments, and operators are worried about it. Click-jacking, malicious apps, unauthorised transactions – it’s a mess. Aggregators who invest in a real-time fraud detection strategy and transaction security will be the ones that network operators trust.
Final Thought: It’s Now or Never
Carrier billing is growing, but so is competition. Network operators are increasingly taking charge, redefining partnerships, and asking: Do we really need a payments intermediary? What do they bring? Are they a value add or a resource drain?
If you’re a payment aggregator, this is your moment to evolve. Step up, offer more than payments, and prove your value in this new reality. Those who reposition themselves will thrive. Those who don’t? Well, let’s just say the future won’t be kind.
So, where do you stand?
A daunting prospect to transition to, a bit like swimming in unchartered waters?
We do understand. Cyber-security and risk management is increasingly complex.
At MCP Insight, we have the expertise and technology to help you navigate this shift with a valued, non-competitive and complimentary partnership approach that can underpin your growth in reputation, relevance, in revenues and its sustainability.
Our platforms provide real-time risk management, fraud prevention, market transparency and consent verification tools to ensure you stay indispensable to network operators, as well as your clients across the wider value chain.
By leveraging our solutions, you can diversify your offerings and get an edge in the evolving carrier billing landscape. I’ve been in your shoes, and I know what it takes to stay ahead. If you want to future-proof your business, let’s talk.
