How carrier billing works
At checkout the viewer chooses to pay by phone. Their number is detected from the mobile network or entered and confirmed with a one-time code. The mobile operator charges the account and passes the money, less its share, to the service, usually through an aggregator that connects to many operators.
Where it matters
Carrier billing matters most where few people hold cards and most mobile accounts are prepaid, which includes much of South and Southeast Asia, Africa, the Middle East and Latin America. In those markets it can be the difference between a viewer being able to pay and not.
It suits small, frequent payments: daily or weekly passes fit a prepaid balance better than a monthly charge.
The trade-offs
- High fees: the operator's share is far larger than a card processor's
- Slow settlement: payouts can take weeks or months
- Failed renewals: a prepaid balance is often too low on the day
- Limits: operators cap how much can be charged per transaction and per month
- Integration: each country and operator is a separate agreement
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