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Grow Your Business Technology

Bango and Samsung Offer Carrier Billing for Digital Purchases

Bango and Samsung Offer Carrier Billing for Digital Purchases
Credit: Gonzalo Aragon/Shutterstock

It's an exciting time for mobile payments. Apple Pay launched this week, letting iPhone 6 and iPhone 6 Plus users pay for in-store and online purchases using credit cards stored on their devices. But another mobile payments system aims to take this to the next level: by billing carriers instead.

Bango, a mobile payments platform, and Samsung today (Oct. 22) announced their partnership that changes the way consumers pay for digital goods. The two companies now integrate "frictionless" payments for purchases made at Samsung's app store.

Previously, digital purchases could be made using only a credit or debit card. With this partnership, Bango now gives the hundreds of millions of Samsung device owners the option of using carrier billing instead. [Apple Pay: Top 3 Features for Small Business Owners]

With just one click, buyers can charge all types of digital goods to their phone bill, from apps to music, games and more. In addition to processing mobile payments, Bango will also handle collection and settlement for these purchases.

Why carrier billing?

Using credit cards and debit cards to pay for digital content has been the standard for mobile devices, but data shows that carrier billing has a higher potential for driving mobile commerce (m-commerce) sales, Bango revealed.

In a recent study, providing the carrier billing option results in higher app store conversion rates, the company found. Given only the credit or debit card payment option, conversion seldom exceeds 40 percent in developed markets and plummets as low as 0.5 percent in developing markets. Using carrier billing, however, conversion rates skyrocketed to 82.4 percent.

For these reasons, app stores are "racing to embrace" carrier billing, outpacing credit and debit card purchases. In addition to Samsung, the Bango mobile payments platform is also used by Google Play, Windows Phone Store, BlackBerry World, Facebook and Firefox Marketplace.

Originally published on Business News Daily.

Sara Angeles

Sara is a tech writer with a background in business and marketing. After graduating from UC Irvine, she worked as a copywriter and blogger for nonprofit organizations, tech labs and lifestyle companies. She started freelancing in 2009 and joined Business News Daily in 2013. Follow Sara Angeles on Twitter @sara_angeles.