Bettina Somer, VP Sales at DIMOCO, writes for PaymentExpert regarding just what the future holds for efficient payments within the iGaming landscape.
Carrier billing (also called direct carrier billing) is sometimes seen as an expensive payment method because of its seemingly higher fees. But when you look closer at what those fees include and what they enable for player-experience, conversion, and revenue, Carrier Billing often proves to be one of the most efficient and profitable payment options for iGaming operators.
Below, we break down the real costs behind CB, and why it can be a strategic advantage for iGaming Operators.
Understanding the real cost of carrier billing
At first glance, carrier billing may appear costly compared to traditional card processing fees. However, that single, all-inclusive fee typically covers the entire payment flow, from authorisation, billing, settlement and fraud prevention, to elements of customer verification.
Card payments, on the other hand, come with multiple layered costs: interchange fees, scheme fees, acquirer margins, gateway charges, fraud-management costs, and chargeback exposure.
Carrier billing eliminates many of these hidden expenses with its simplified pricing, predictable margins, and significantly reduced risk from disputes or fraudulent chargebacks. What looks like a ‘higher’ fee often replaces a long list of hidden costs and operational headaches.
Conversion, reach, and incremental revenue
In iGaming, player conversion is everything. The easier it is to make a deposit, the more likely players are to complete it, especially on mobile. Carrier billing is built for mobile-first experiences. With no need for card numbers, passwords, or external logins, players can deposit in seconds and be back in the game immediately.
This frictionless flow results in higher conversion rates, more frequent deposits, and a measurable uplift in player lifetime value. According to the EGBA by 2029, 67% of online bets will be placed via a mobile devices.
CB is also ideal for micro-deposits and impulse top-ups, the smaller payments that players make more often. The simplicity of paying through a phone bill increases frequency and player engagement. For example, at DIMOCO, we see and uplift of 10% in revenue for our carrier billing clients (across all industries).
Security, fraud prevention, and privacy
Carrier billing reduces the need for players to share financial information, since the transaction is tied to their mobile account rather than a credit or debit card.
This greatly minimizes fraud exposure and removes PCI compliance burdens for operators. Carriers also provide strong identity verification at the network level, adding a layer of trust and reducing payment fraud without adding friction for legitimate users.
For regulated iGaming markets, CB helps streamline payment-related security requirements, although operators still need to maintain full compliance with KYC and AML regulations.
No chargebacks and fewer disputes
One of the biggest benefits of carrier billing is the absence of traditional chargebacks. Because payments are processed through the mobile carrier, there is no card network involved and no mechanism for consumer-initiated reversals.
This means:
- No chargeback disputes to investigate.
- No losses from fraudulent claims.
- No wasted time handling reversals.
The result is predictable, stable revenue with lower administrative overhead.
Simplicity and operational efficiency
For operators, CB means fewer intermediaries, simplified settlements, and a cleaner reconciliation process. The mobile carrier handles most of the billing logistics, and payments are aggregated and settled on a predictable schedule.
That simplicity means fewer vendor relationships, less fraud management overhead, and easier accounting.
When carrier billing makes the most sense
Carrier billing isn’t a one-size-fits-all solution, but in specific situations it shines:
Ideal use cases:
- Mobile-first or app-based player segments.
- Small, frequent deposits and impulse top-ups.
- Markets with low card penetration.
- Players who prefer anonymity and security.
Less ideal for:
- Very high-value transactions (due to carrier-imposed limits).
- VIP players who expect larger deposits.
- Markets where carrier coverage is limited.
For most operators, the best approach is to offer CB alongside other payment methods such as cards, wallets, and open banking. This provides players with more choice and optimises conversion rates.
Comparing overall costs
When comparing CB against cards or wallets, the focus should be on total net revenue, not just per-transaction fees. We need to consider:
- Higher conversion rates and lower abandonment.
- Increased deposit frequency.
- Zero chargeback losses.
- Lower fraud management costs.
- Simpler reconciliation and operations.
When you factor in these elements, carrier billing’s cost per successful deposit is often lower than that of other methods, and its ROI much higher.
A high-value channel for iGaming growth
Carrier billing is not just another payment option; it’s a revenue enabler. It converts more players, reduces fraud and chargebacks, and delivers a seamless mobile experience that aligns with how iGaming customers play and pay today.
In real terms it is not there to replace cards or bank transfers, but it is a powerful addition that helps operators capture revenue and improve overall payment performance. Operators such as STS in Poland and NeoBet in Germany have already added carrier billing to their payment stacks.
The true cost of carrier billing isn’t in the percentage fee; it’s in the opportunities lost of not offering it.
