HomeDirect Carrier BillingHow does Direct Carrier Billing work?

How does Direct Carrier Billing work?

If you have heard the terminology around direct carrier billing, but are not quite sure how it all works, then this is the place for you. Here is a brief overview how all of the pieces fit together with this booming billing method.

If you are new to direct carrier billing, then check out our what is direct carrier billing? article for a detailed overview.

From a consumer point of view DCB is extremely straightforward and can be broken down into this simple flow:

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DCB Process

A further example of the flow for a direct carrier billing transaction is below. We have used a gaming product for this 5 step example:

The user decides to deposit money into a gaming account with an online or mobile gambling operator, to buy a lottery ticket or to be able to place bets. On the gaming site they see that one of the payment options of ‘Pay by phone’.
The user selects ‘Pay by phone; to pay using DCB. The payment order is then transmitted by the gaming operator’s carrier billing provider to the player’s contracted mobile network operator (MNO) – with whom the user has his/her mobile phone number and SIM card registered. This can be a pre-paid or postpaid account, so long as there is enough credit.
The MNO then verifies the user in its database and accepts payment. The payment amount is then added to the monthly mobile phone bill issued by the MNO to their user / customer (if they are a contract-based) or deducted from their balance if they are a pay-as-you-go customer.
The mobile phone company (MNO) confirms to the DCB provider that the user has the funds to pay for the gambling deposit. This occurs with no personal data going to the payment provider.
The total amount of transactions made by users of a given mobile network operator within a specified period of time is transferred by the mobile network operator in question to the merchant, in this case the gambling operator to credit an account, pay for a bed, or buy a lottery ticket.

Direct Carrier Billing Value Chain

For a user to make a DCB payment, several different elements need to be working together to make it all work. These are:

Content or Service Provider

The Content or Service Provider (e.g., a streaming platform, game developer, or digital content provider) is the source of the product or service the user wants to purchase.
They integrate DCB into their payment options, allowing users to choose “Pay by Mobile” or “Direct Carrier Billing” at checkout.
Once a user selects DCB, the content provider initiates a request to the DCB Aggregator to validate and authorize the payment.

DCB Provider/Aggregator

The DCB Aggregator serves as an intermediary between the Content Provider and the Mobile Network Operator (MNO).
It handles transaction processing, payment routing, and integration with multiple MNOs, ensuring smooth connectivity for various payment requests.
The aggregator authenticates the user, often by sending a One-Time Password (OTP) or requesting confirmation directly through the mobile device. Once authenticated, the aggregator submits the transaction to the MNO for approval.
After confirmation, the aggregator provides real-time payment status updates to the content provider.

Mobile Network Operator (MNO)

The Mobile Network Operator (e.g., AT&T, Vodafone) is the company that bills the end user for the service.
Once the MNO receives the transaction request from the DCB Aggregator, it verifies the user’s account (to ensure they have sufficient balance or credit).
Upon approval, the MNO adds the transaction amount to the user’s phone bill (for postpaid accounts) or deducts it from the prepaid balance.
The MNO then settles the payment with the DCB Aggregator, who in turn settles it with the Content Provider.

Direct Carrier Billing Use Cases

The simple but effective DCB chain allows many innovative use cases which enable the billing method to simplify many everyday services.

Vodafone Germany, in collaboration with messaging company HORISEN and billing provider DIMOCO Payments, has introduced the world’s first public transportation ticketing system utilizing Rich Communication Services (RCS) and Direct Carrier Billing (DCB). This innovative solution enables users to purchase public transport tickets directly through an RCS chat, with charges conveniently added to their mobile phone bills. The process is straightforward: users scan a QR code at the bus stop, select their desired fare, choose carrier billing as the payment method, and proceed with their journey. This initiative, part of Vodafone Germany’s UPLIFT project, aims to enhance public transport accessibility and convenience by integrating advanced messaging and payment technologies. MORE

In February 2024, gaming platform SuprNation partnered with Fonix to integrate Direct Carrier Billing (DCB) into its services, improving user onboarding by offering a simple deposit option. This collaboration enables players on SuprNation’s brands—Duelz, VoodooDreams, and NYSpins—to make deposits directly through their mobile carriers, simplifying the payment process. Fonix’s CEO highlighted the potential of DCB to drive player acquisition and retention within safe spending limits. MORE