LIVE FROM mPAYMENTS SUMMIT, LONDON: Mobile operators argued that carrier billing, which involves taking the cost of a transaction off a subscriber’s mobile account, is still relevant despite a host of new entrants in the UK such as Pingit or Paym.

“In terms of convenience, it is the most straightforward way to charge for small, digital goods. Users don’t need cash or a credit card and it’s easy to set up,” said Jeremy Stafford-Smith, Vodafone’s premium voice and video product manager, during a panel.

But over the last one to two years, a number of new mobile payment services have launched in the UK, some of which let users transfer money directly from their bank accounts using just their mobile numbers.

Operators defended their position against these new rivals, many of whom are backed by leading retail banks.

Sharan Rattan, Three’s head of mobile payment services, said carrier billing “is especially convenient for low-value, high volume goods.”

However, as a payment system, carrier billing is only available for digital rather than physical goods.

Meanwhile Simon Wingrove, EE’s head of on-bill services, talked up how the system provides accessibility for the unbanked and underbanked. As long as users have a pre-paid mobile account – which is topped up with cash – then they can make use of carrier billing. Carrier billing can be seen as a form of financial inclusion, he commented.