Home > Features > SMS Billing: Remains Popular in Some Regions • Bookmark   • Newsletters   • Register Search Options

FEATURE

SMS Billing: Remains Popular in Some Regions

SMS Billing: Remains Popular in Some Regions

January 4, 2014
Text size: 
View in Digital Mag
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.66%
Yes, but in a few years
  36.87%
No
  23.46%
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.

" SMS is highly used for adult dating sites, single movie views or other services which involve small amounts such as app payments. -Paul Groenendaal, DialXS. "

The mobile/wireless sector continues to grow steadily in the adult entertainment industry, and many people who consume adult content on mobile devices are also paying for it using those devices. Most are choosing carrier/operator billing, although others are opting for billing via SMS (short message service).

“Compared to other alternative billing methods, SMS billing offers the mobile customer quick, safe and secure payments,” explained Judy Shalom, managing director for Affil4you. “SMS billing also allows people without—or those unwilling to use—a credit, debit card or other electronic payment solution to instantly do online payments and access content that would otherwise be unavailable.”

Some billing specialists allege that SMS billing is on its way out. Shalom disagrees, although she is quick to point out that in Europe, carrier billing (an area in which Affil4you is a leader) is much more prominent. “We have been hearing a lot lately that SMS billing is dying. This is, of course, untrue, but carrier billing is the key to content monetization on mobile devices. SMS billing is not as popular in Europe, since the dominant form of mobile billing is direct operator billing. Direct operator billing is the most powerful and most successful method of billing mobile digital content.”

When companies that offer SMS billing are asked to cite some advantages of SMS payments, ease of use is frequently mentioned. Daniela Ganick, senior sales manager for the mobile payment specialist iTelebill, noted: “The biggest advantage of SMS billing is that literally everyone who has a cell phone can use it to pay for an online service. The second is that it’s anonymous and secure. No user needs to enter any debit or credit card details—we do not need their e-mail address, name or any other personal or payment details. All he needs to do is send in a text message to get started.”

Asked to cite some of the world’s best markets for SMS billing, Ganick responded: “SMS billing, just like any other alternative billing method, will mainly be used in countries where credit cards are not very common. In fact, in most European countries, credit cards would be considered the alternative payment method, as the majority of users still does not have one. Bank payment and phone payments are most commonly used and should always be considered by a website owner when trying to convert their European traffic. The U.K., despite having standard Visa debit cards, is still one of the best converting countries when it comes to SMS payments, but also, any European country as well as Australia are doing really well.”

And when Ganick was asked to cite an example of a major country that lagged behind in the area of SMS billing, she replied: “That would be the USA, in my opinion. SMS and direct operator billing are still very limited and highly regulated by the local network, making it very difficult to find a workable solution.”

Paul Groenendaal, a senior account manager for DialXS, asserted that it is a myth that SMS billing is dying and that it is “hardly used anymore” or “cannot be used in combination with adult services.” None of that is true, Groenendaal said — and he cited the Netherlands, Belgium, Germany, Italy, the U.K., Spain and France as examples of major developed countries in which there continues to be a demand for SMS billing. SMS, according to Groenendaal, is popular in those countries because it is “fast, easy to use” and affordable.

Groenendaal observed: “SMS is highly used for adult dating sites, single movie views or other services which involve small amounts such as app payments.”

The mobile sector is showing no signs of slowing down, and Ganick asserted that the adult webmasters of the future will need to be as mobile-friendly as possible. “Even trial subscriptions can be done by SMS,” Ganick observed. “Apart from SMS billing, there is, of course, also direct operator billing and premium-rate phone numbers, which can also be great for converting users. Premium-rate phone numbers are especially great for credit top-ups and pay-per-minute payments like live streaming services: VOD, cams, etc. Merchants interested in increasing their conversions in any country with a low credit card penetration should always consider available phone payment options to ensure best possible conversions.”


PROFILES & BIOS

WIA Profile: Nancy Moore

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

WIA Profile: Janet Rini

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Rise of SFW Cams for Voyeurs

Since its inception, Chaturbate could be called many things from sexy to successful, but one thing it can’t really be called is safe for work. It’s no secret that the entire adult cam industry... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec

Everything To Do With Sex Show

Jan 27 - Jan 29
Halifax, Nova Scotia

The European Summit

Mar 04 - Mar 07
Barcelona-Sitges, Spain

The TEA Show

Mar 05 - Mar 06
Hollywood, CA
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!