OUR VALUE PROPOSITION
The Carrier Billing Opportunity in Latin America
with Luisa Muneratti, DOCOMO Digital, VP – Europe & Latin America
DOCOMO Digital is an innovative payment solution provider and the European-based operation of NTT DOCOMO, Japan’s largest mobile operator.
We partner with carriers, merchants, app stores, OTT services and payment providers globally. Our Payments portfolio solves the challenges of scale, customer acquisition, regulation, and complexity for our partners. With teams based across fifteen offices, we enable telecom carriers to grow their digital revenues while improving customer loyalty and lifetime value.
For digital brands, our platform and carrier bundling services catalyse acquisition of new subscribers, especially in emerging markets. And Alternative Payment Methods (APMs) like carrier billing and e-wallets offer global merchants’ access to their consumers, with our simple API and international payments’ settlement facilities.
The Payments Landscape in Latin America
Latin America’s payments landscape is complex and presents unique challenges.
A large segment of the population is underserved by financial institutions, and only a minority of consumers have access to international credit cards. Additionally, traditional payment processors are often inefficient, and there is a lack of online payment platforms that operate across the region.
An Increasing Need for Alternative Payments
These factors create friction in a consumer’s online payment process, and can slow down their purchase journey. To overcome these barriers, there is a need for companies and consumers to adopt alternative payment methods.
The Opportunity for Carrier Billing
Latin America is home to one of the fast-growing smartphone markets worldwide. GSMA predicts that smartphone connections across the region will rise by 189 million between 2018 and 2025, bringing the adoption rate up to 78%. This increase in smartphone penetration, coupled with a growing need for alternative payments makes the continent a strong market for direct carrier billing (DCB).
However, deploying DCB can be challenging due to the technical, financial and regulatory complexities involved. This is where DOCOMO Digital comes into the picture to help fill in the gaps, and facilitate the implementation of DCB.
How DOCOMO Digital Helps Telcos Grow
“It’s a very special moment for Latin America right now.
The region’s payments and regulatory landscapes have evolved, and these changes have given rise to the growth alternative payment methods such as direct carrier billing.
Leading telecommunications providers, including America Movil, Telefonica and Millicom are recognising the need to have a partner. And this is where we come into the picture—because we know how to handle regulatory, technical and financial complexities involved.
Latin America has a credit card penetration rate of 40%. When we talk about prepaid and postpaid payment settlement methods, the region has a 70% average for prepaid transactions. Yet, the majority of telcos lack real-time lending capabilities that enable instantaneous top-ups for consumers attempting to make a purchase.
As such, I see the numerous opportunities for DOCOMO Digital to step in as a partner who can help fill in the gaps. Beyond providing knowledge and expertise, we support telcos by creating an ecosystem for carrier billing.”
LUISA MUNERATTI, VP – EUROPE & LATIN AMERICA – DOCOMO DIGITAL