When: Wednesday, 8th May 2013 at 3pm (GMT)
Webcast: Webinar - Payforit 4 UK – The Mobile Billing Opportunity

txtNation discuss the Mobile Billing Opportunity with Payforit version 4 for the UK market and why merchants are moving to this platform. Key points will include:
  • What is Payforit?
  • Where can Payforit be used?
  • Payment flow and implementation options
  • The benefits to both merchants and consumers
  • Use cases for Payforit
  • Technical options and support


Begun back in 2006 by all five of the UK mobile network operators ((MNOs) – 3UK, O2; Orange: T-Mobile; and Vodafone, Payforit is an instant mobile payment system. All UK networks are supported, including virtual (MVNO) operators like Tesco, Lebara and Virgin. In fact, any UK mobile number (which starts with 07x) can use Payforit.

Read more about txtNation’s Payforit instant mobile payment system.

Source: Gomonews.

When: Wednesday March 20th 4pm GMT (30 mins)
Webcast: Webinar – Monetising Mobile Apps with Operator Billing.

txtNation discuss mCommerce with Mobile Apps.
“Making Sense of Mobile Apps”


Discussion Key Topics will include:

i) Direct Operator Billing availability from the networks and what we are doing in this regard. Supporting DOB as a business.
ii) Other mobile billing options using other billing flows. e.g. MSISDN  forwarding, Payforit, WyWallet.
iii) How Mobile messaging works alongside Mobile Billing / payments with examples.


txtNation provide Direct Operator Billing across all major mobile networks in Sweden via WyWallet. WyWallet was formed by T4 Sverige, the Swedish operators’ joint venture between Telia, Tele2, Telenor and 3.

When the news was announced of an alliance across all mobile operators, being set up, we got to work on making sure we were ready. We have invested heavily in our platform and the MNO’s requirements to support WyWallet as an Aggregator over the course of the last year.

“In Sweden, the four major mobile operators have teamed up to create the WyWallet mobile payment service.”

WyWallet to be a benchmark for other markets

It is quite possible that WyWallet will become a standard in the industry with regards to how successfully to deliver a mobile payments initiative. Only time however will tell on this, but allowing mobile subscribers to keep as much as possible the same to the way they make payments at at this time will help uptake.

WyWallet requires Aggregators. Aggregators require WyWallet.

Service providers thinking they can go to WyWallet direct and get the type of mobile billing they require are mistaken. All service providers still need to connect to a Mobile Aggregator to deliver billing via a Short Code to enable SMS Payments (Pay by SMS).

txtNation work directly with WyWallet (txtNation being only one of several partners certified to do so) as an aggregator, meaning clients that want to connect to WyWallet whilst maintaining existing flows they have had previously with SMS Billing and / or a Short Code, need to go via an aggregator like txtNation (acting as a sub merchant), to perform the connection to the WyWallet platform.

  • WyWallet is exclusively a ‘charger’ only. txtNation provide the connection for Short Code connectivity to WyWallet. This is required to bill mobile users via SMS or via in-App Billing.

To Note: WyWallet only allows Short Codes to certified aggregators. It is the aggregators role to deal with merchants below them.

Source and Read more: txtNation certified with WyWallet

Why Direct Carrier Billing

Until recently, Premium SMS has been the main way to which mobile users across the world have paid for content, like mobile games and ringtones. Although all mobile phone users could make use of this method of mobile billing it has a number of disadvantages in terms of ease of use – fluidity of the payment process and refunds.

Credit card options have become popular with stores like iTunes using this option as their preferred method and with this gaining a loyal user base, but the disadvantages to using credit card are larger than any other form of mobile billing, with the simple fact you have to pre-register (or fill out a form) on a mobile device to use credit card as a mobile billing option.

The new kid on the block, Direct Operator (or for those in North America, ‘Direct Carrier’) Billing, is here to not only have an immediate impact and offer these content stores a real alternative, but it is highly possible that this could ‘replace’, or at least have larger market share over premium and credit card options in the longer term.

For this to happen though, one important thing needs to unfold and that is the operator cut – their ‘revenue share’.

In recent years, mobile operators worldwide have historically taken a higher revenue share of the retail price for digital mobile content – they claim this is to deal with issues around bad debt, resulting from legacy mechanisms like premium SMS that partly account for this. This is slowly starting to change however, with larger brands choosing Direct Carrier Billing as their preferred billing option and with rates from 15-30% coming into play its not hard to see why.

Direct Carrier Billing Adoption

Direct Carrier Billing has become more widely adopted for in-app payments than its given credit for or maybe even thought about.

Let’s not forget here that Apple takes as much 30% from their own billing option with iTunes. Nokia with the Ovi Store uses Direct Carrier Billing as their preferred choice above credit card, as now does Mircosoft. Both having direct deals with mobile aggregators to make sure localised billing is available via their customers mobile operator.

Direct Carrier Billing Advantages

Direct Carrier billing (also known as Direct Billing) brings together the advantages of Premium SMS (being available to all mobile phone users) with the advantages of debit/credit card payment (reliable, easy audit trail, no charge backs) while also providing a low-friction purchase environment (no forms!!).

Merits of PSMS and Carrier Billing:

Premium SMS
Major Advantage
- Premium SMS Available to all mobile phone users

Major Disadvantage
- Multiple steps needed to make payments resulting in low conversion rates
- Inability to support refunds

Direct Carrier Billing
-Available to all mobile phone users
-Supports refunds and itemisation
-Secure (if properly implemented)
-Enhanced conversion rates
-Greater fraud protection

Operator Spending Caps

Direct Carrier billing provides several very important advantages over the competitors offerings, with low friction purchases being the most notable benefit from an application stores perspective (thereby increasing ‘in-app’ conversion rates), while also being accessible to customers who do not have credit or debit cards.

If mobile operators can continue to reduce their share on the transaction, the future of direct billing looks very bright indeed.

Related Posts:
6 reasons Direct Operator Billing will succeed

txtNation provides Direct Billing in multiple markets.

Payforit is gaining more and more traction as a mobile billing option for merchants, both on-line and on-mobile.

Payforit 4 Release

With the new release of Payforit version 4, there are many significant improvements that will help both merchants and consumers.

With it’s clear pricing and its improved ease of use there is much potential for Payforit version 4, in the UK.

Payforit 4 New Features

Several new features will be released May 15th, that include:

- Improved Payment Screens
Clean look and feel with improved design for more conversions.

- Single Click Billing
Payforit now allows for repeat user billing to be done with ease.

- Support for Payforit 4
Payforit works with regulators and merchants support in mind.

- HTML5 Payforit Payments
Payforit now offers a suitable sized payment screen for the type of browser or app.

The comparisons and debate of Premium SMS V’s Payforit will continue long into the future. At txtNation, we believe both mobile biling options will be co-exist depending on the service or application type.

Further Reading:
View our Payforit API.
Check out out page on how to connect to Payforit!


txtNation Payforit UK

From the Mobile Entertainment Forum, a new study was released based on survey results from more than 8,000 mobile consumers across 9 countries. MEF’s global study highlights how many customers prefer mobile billing than other alternative methods of payment.

How many customers prefer Mobile Billing?

82% of respondents across all countries surveyed have used their mobile phone to engage in commerce, to either research or purchase items, while 71% have used their mobile phone to make purchases of everything from virtual and digital goods to physical tickets, books, and electronic goods.

Mobile Billing

Direct Operator Billing Acceptance

The MEF data shows that mobile operator billing is, in fact, the most commonly used way of paying for purchases, with roughly 39% of respondents using this method.

Direct Operator Billing

* Source: MEF Global Consumer Survey 2011. Base = 8,530 respondents across 9 countries who have participated in mobile commerce.

Payforit. Is it really everything the networks hoped for and more?

A lot of people still remain unconvinced on Payforit in the UK market. Mainly due to one simple and easy to understand reason – conversions!!

As time has moved on since the first PFI UK release, much has changed, the most notiable is the call to action getting better and more streamlined as subseqent Payforit versions have been released over the years – it’s not surprising that so has conversion rate improved!

At txtNation we have seen a rise of up to 15 per cent on conversion rates compared to short codes (when its used on Mobile Sites – Payforit for WAP).

Payforit was in development for several years years lets not forget and I think that now we are at a stage and timeline where there is a clear user interface and single click payment method that will be a success and consumers will learn to trust.

For me where Payforit truly excels is in the fact that it can immediately open up a marketing channel, almost overnight -Payforit’s MSISDN forwarding or pass-through, facilitates increased billing – It’s that simple. The other improvement is in customer care. Payforit has improved pricing transparency at the point of purchase and also when the mobile payment is confirmed.

Payforit for everyone

Direct Operator Billing as its is in some other countries is not currently possible in the UK. What is very clear when working with the telco’s daily – is the ‘back-end’ for PayForIt is Direct Billing using a operator approved, customer friendly and secure, branded ‘front end’.

Payforit from the customers point of view

Good news for the customer. One click payments!? No shortcode need to be remembered any more and the possibility of fraud is therefore greatly reduced. Customers also need not register! Collaboration and a session with their mobile network operator provides all they need to purchase. No entering credit card details. Simple, anonymous purchases!
any more Finally as we all know, consistency counts! Consistent payment pages from step one of the PFI process instil confidence.

Of course, all these things can still be achieved using Premium SMS of course with Web Opt-in (pin) now possible again via several 3rd party approved PIN suppliers in the UK.

The choice for digital service providers in the UK market in terms of ‘mobile operator backed’ billing, is between Premium SMS using an MO opt-in, Web Opt-in (PIN) and Payforit UK.

Find out more about txtNation contact us at http://txtnation.com/about/call/. Connect to txtNation, providing PayForIt, across all Uk mobile networks.

Author: Michael Whelan