German mobile network operators; Telefónica Germany, Telekom and Vodafone have been notified as carrier billing agents for mobile payments firm, DIMOCO . The agreement enables them to process payments of goods and services under DIMOCO’s payment license.
Since January 2018, mobile network operators (MNOs) are obliged to operate under the telecommunication exemption of PSD2 regulation, entitling them to only process digital goods, ticketing, parking and charities, but restricting them from billing for goods and services outside the telecommunication exemption.
The DIMOCO agent model allows MNOs to operate under the company’s financial license, enabling them to process payments for goods and services outside this exemption.
DIMOCO, currently has 210 MNO connections in 48 countries, covering 90% of Europe. Since 2016, DIMOCO operates under its payment license, granted by the Austrian Financial Market Authority (FMA) and passported into all EU member states. Consequently, DIMOCO can process transactions for goods and services outside the telecommunication exemption of PSD2 for MNOs who have been notified as DIMOCO agents.
German MNOs Telefónica Germany, Telekom and Vodafone have been the first to recognize the potential of the carrier billing agents model. Out of a German population of currently 83.02 million inhabitants, only 40 million people own a credit card, and 23 million hold a PayPal account.
In 2019, over 140 million mobile subscriptions were registered in Germany, ranking carrier billing as the payment method with the highest penetration and more potential customers than any other payment method.
Obtaining an own license has been a route that most of the MNOs haven’t pursued as it’s a very complex and costly procedure. Being notified as a DIMOCO agent is not only much faster and easier, MNOs can also benefit from our expertise and experience as a licensed payment institute. We are all set to deploy DCB payments for carsharing, taxis, rental of e-scooters, electric car charging and many other industries, emphasizing on a solid legal basis.
Clemens Leitner, EVP, Carrier & Business Development, DIMOCO