UK Mobile Payments

Why MobilE Payments?

Accessibility

It allows users to make purchases without having to enter sensitive financial information, making it secure, particularly useful for online transactions on mobile devices.

Convenience

It provides a quick and convenient payment method, especially for users who do not have access to traditional banking services

Wider Reach

It enables merchants to reach consumers who may not have access to other payment methods, thereby expanding their customer base.

UK Payment Mechanics – PSMS vs. DCB

Premium SMS and Direct Carrier Billing (DCB) are both payment methods that involve charging consumers for digital goods and services through transactions placed onto the users mobile phone accounts.

However, there are key differences between the two payment mechanics:

  1. Payment Process:
    • Premium SMS: With premium SMS, the user initiates the payment by sending a text message to a designated short code, typically in response to a specific offer or service. The charge for the premium SMS is then added to the user’s mobile phone bill (or deducted from their prepaid balance).
    • Direct Carrier Billing: In DCB, users authorize payments directly through the merchant’s platform or app. The payment is approved by the mobile network operator and processed by the approved payment intermediary, deducting the cost of the purchase from the user’s mobile phone bill (or prepaid balance).
  2. Usage and Purpose:
    • Premium SMS: Premium SMS can be used for one-time or subscription based transactions – voting, competition entries, news alerts, sports updates etc…
    • Direct Carrier Billing: DCB is commonly used for a wide range of digital goods and services, including in-app purchases, mobile apps, subscriptions, and online purchases. It provides a seamless payment experience within apps and websites, without requiring users to enter additional payment information.
  1. Integration and Implementation:
    • Premium SMS: Implementing premium SMS services typically involves agreements between content providers, mobile network operators, and SMS aggregators. It often requires specific short codes and keyword configurations.
    • Direct Carrier Billing: DCB integration requires collaboration between merchants, mobile network operators, and payment service providers. Merchants integrate DCB APIs or SDKs into their platforms to enable seamless payment processing.
  2. Regulation and Compliance:
    • Premium SMS: Premium SMS services are subject to regulations and guidelines established by regulatory authorities to protect consumers from fraudulent practices and to ensure transparency in billing.
    • Direct Carrier Billing: DCB is also subject to regulatory oversight, and mobile network operators often have their own guidelines and requirements for merchants to ensure compliance and prevent misuse.

In summary, while both Premium SMS and Direct Carrier Billing involve charging users for digital content and services through their mobile phone accounts, they differ in terms of payment initiation, usage scenarios, integration processes, and regulatory considerations. Direct Carrier Billing offers a more versatile and integrated payment solution for digital transactions, while Premium SMS is typically used for specific types of one-time transactions initiated via text message.

Scroll to Top