South Africans choose Direct Carrier Billing to pay for digital entertainment
South Africans will pay $89M for digital content and services this year through Direct Carrier Billing (DCB). This figure will register a YoY growth rate of 16% over the next four years to reach $159M in 2026, according to our last analysis “DCB evolution and trends 2022-2026”, carried out as a company specialized since 2008 in monetization technology for sport and entertainment.
DCB spending in South Africa represents around 15% of the global market in Africa and the Middle East, placing it as one of the most relevant countries by billing. South Africans currently spend an average of $4.2 per month on digital content. By 2026, this average figure will reach $5.5/month/user.
The digital market is largely the one that most stimulates users when it comes to paying for their purchases through the operator. The most popular content paid with DCB is, in this order, video games, videos and music. Specifically, these categories will represent an expense of $86M in 2022.
Games and videos, 75% of DCB spending
Digital content has a significant weight in DCB, reaching 91% worldwide. In South Africa, this percentage rises to 97%. According to Javier de Corral, Telecoming’s Country Manager in South Africa, “these data highlight that payments through mobile phone break down barriers, enable transactions because they are carried out quickly and safely for the user“.
DCB is also gradually conquering other emerging markets, such as ticketing, online gaming and physical goods, with a YoY growth rate of 31%, 57% and 40%, respectively, for the next four years. It is a sector already showing signs of high potential. This year will close with $7M in ticket sales in Africa and the Middle East region.
South Africa, compared to other countries in the region
The DCB market will grow by 7% this year and will keep increasing in the coming years. Javier de Corral explains, “South Africa is a more mature market in the use of DCB than other countries included in the analysis. Around one in five DCB payments made in the region analyzed will be operated from South Africa “.
Smartphones have conquered Africa. Not too long ago, feature phones were the reference devices for making mobile payments, but in 2021, smartphones generated $450M in DBC in Africa and the Middle East. “The mobile phone is becoming a democratized element to pay for all products and services. Doing it through DCB streamlines payments and provides security throughout the process. South Africa is one of the countries in Africa that is best incorporating DBC, as confirmed by the data“, says Javier de Corral.