Across most of West and Central Africa, the share of adults with a bank account remains well below the share who own a mobile phone. Put plainly: far more potential customers carry a handset than a payment card. Direct Carrier Billing (DCB) starts from that fact.
How it works
The customer buys a digital service and confirms the payment by SMS or on a confirmation page. The amount is deducted from their airtime, or added to their monthly bill if they are on a contract. No card, no bank account, no payment details to enter.
The journey has four steps:
- the customer selects “pay with my airtime”;
- the platform identifies their operator, usually from the phone number;
- the operator sends a confirmation request and checks the balance;
- the service is unlocked, and the merchant is paid after commission.
Where it fits
DCB suits small, recurring or impulse purchases: content subscriptions, data or game credit, donations, online application fees, micro-payments for a digitalised public service.
It fits large amounts far less well. Operator caps and commissions — markedly higher than card rates — make the economics difficult above a certain ticket size. For a larger basket, mobile money or cards remain the better fit.
Four things to anticipate
Negotiating with each operator
DCB requires a commercial agreement and a technical integration with every operator. Commission rates, caps and settlement terms are negotiated case by case, and vary widely between countries. Going through an aggregator that is already connected avoids multiplying contracts.
The success rate
Unlike a card payment, a DCB transaction can fail simply because the balance is too low at that moment. Tracking the completion rate, and retrying at the right time, makes a measurable difference to revenue.
Settlement
Settlement is generally slower than in conventional card payments, and commissions are higher. Both belong in the business case from the outset, not after go-live.
Compliance
Depending on the country, DCB falls under payment services regulation, telecoms regulation, or both. [To be confirmed with your legal counsel for each target market.]
DCB, mobile money or card?
| Criterion | DCB | Mobile money | Card |
|---|---|---|---|
| Account required | No | Yes, a wallet | Yes, a bank account |
| Suitable amounts | Small | Small to medium | Any |
| Checkout friction | Very low | Low | Medium |
| Commission | High | Medium | Low to medium |
These three methods are not competitors: they cover different situations. A complete payment journey offers them side by side and lets the customer choose.
Where to start
A DCB project rarely starts with technology. It starts with three questions: what is the target basket size, which operators cover your audience, and does the business case still work once commission is deducted? If the answers are clear, the technical integration is the easy part.