Mobile Operator Payments
The easiest and safest way to pay for digital services and content
Luxembourg mobile operator payments for fast & quick purchases of services, digital content, donations and competitions
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What are Mobile Operator Payments?
Mobile Operator Payments in Luxembourg are available through two channels:
- Premium SMS: A secure mobile billing process where mobile phone subscribers just need to send a SMS text message to a specific 5-digit phone number, known as a short code, to pay for services, digital goods, take part in competitions or make a donation.
- Direct (Carrier) Billing (DCB): Enables mobile phone users to subscribe a single or recurring payment(s) on a secure mobile web page. This feature is available with selected mobile operators only.
Both Premium SMS and Direct Billing payments are charged to subscribers through mobile operator invoices, on top of regular phone usage, as a separate item on the phone bill, in full transparency.
What is a short code?
A short phone number
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A Premium SMS short code is a short sequence of digits used as a recipient or sender number for SMS text messages to charge mobile subscribers small amounts on top of the regular price of a text message. With 5 digits in Luxembourg, they are shorter than a normal phone number and therefore easier to remember.
Which amounts can be paid?
Payments up to 50 EUR
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With Premium SMS, a price point is set for each short code, using specific short code ranges per price point. Each SMS text message sent to these short codes is charged to customers at this price. Today, the maximum price per SMS text is 3 EUR in Luxembourg. Alternatively, with the Direct Billing feature, maximum amounts of up to 50 EUR can be charged.
Why use Mobile Operator Payments?
It’s quick & easy to use
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Premium SMS and Direct Billing are the easiest, fastest and safest means of digital payment. They are available to virtually all mobile subscribers in Luxembourg, not requiring a specific activation. Using Premium SMS and Direct Billing, consumers can very easily and quickly purchase digital products and services or make donations.
Where to pay with Premium SMS or Direct Billing?
There are a number of interesting, entertaining and useful services that you can purchase easily via Premium SMS and Direct Carrier Billing:
Mobile Operator Billing is one of the most straightforward and commonly used payment methods in the world, because all you have to do is send and/or receive an SMS message or agree to a payment on a mobile web page – features that are supported by every smartphone. It is also a very safe way of paying, as an explicit consent is required for each individual payment or subscription, given by the owner of a mobile number, avoiding risk of loss and theft that consumers are subject to with cash or card payments.
Premium SMS charging mechanism and methods
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I purchased a service via Premium SMS or Direct Billing - how will this be charged?
You will pay for a digital product or service you purchased, subscribed, donated or voted through your mobile phone bill. Charging is done either through a one-off payment (if you have purchased content on a once-only basis), or through recurring billing at predefined cycles you agreed to for subscription-based services. -
What are the differences in terms of Premium SMS billing methods?
The two billing methods that apply to Premium SMS services are Mobile Originated (MO) SMS - one-off payments - and Mobile Terminating (MT) billing - subscription-based payments:
One Off Payments - SMS Premium
A few examples:
- Pay per view
- Voting
- TV show Contest
- Radio show Contest
- Q&A games
Subscription-based Billing - SMS Premium
A few examples:
- Video Streaming
- Music streaming
- Multi offer portal access (games, entertainment ...)
- SMS news
- Traffic or weather forecast
Direct Billing mechanisms
I purchased a service and paid for it over Direct Billing. How will it be charged to me?
The purchase you just made will be charged to your next mobile phone bill. Charging is either one-off or recurring (e.g. weekly, monthly …).
Is this safe, can anyone charge me without my consent?
At the moment you agree to a Direct Billing payment, the ownership of your mobile number will be verified with your mobile operator. So this type of consent requires the person that gives it to be in possession/have access to a phone. After your purchase, a SMS text notification will be sent to your mobile number providing the details of the transaction or subscription.
The Luxembourg Mobile Operator Payments framework
Stakeholders in the Luxembourg market
Mobile operators
All Luxembourg mobile operators that provide Premium SMS (and Direct Billing) directly or indirectly
Aggregators
Content and Service Providers using Mobile Operator Billing
A selection
RTL Luxembourg
Mediahuis
Amnesty International
Ville de Luxembourg (parking)
A timeline of Premium SMS services in Luxembourg
- 2004: Launch of the first Premium SMS service for POST and Tango, operated by Nvision as the aggregator
- 2004: First direct billing service launched by Tango and Nvision
- 2005: Vox mobile joins the Luxembourg market as third operator
- 2006: Mpulse is founded and takes over the SMS premium and routing business of Nvision
- 2007: Short codes changed to 5 digits, starting with a 6
- 2008: Takeover of Mobilux and CMD clients by POST Luxembourg
- 2016: Launch of JOIN: Premium SMS services become available for JOIN subscribers
- 2020: JOIN customers transferred to POST Telecom
- November 2021: Next generation customer care service put into production for mobile operator payments
- March 2022 : Launch of the StopSMS Luxembourg self-servicing portal for Luxembourg mobile subscribers, to facilitate management of services subscribed through Mobile Operator Payments
Use cases in Luxembourg
Contest
The largest Luxembourg television and radio operator for on-air competitions and voting (on RTL Luxembourg and Eldoradio programmes), as well as for exclusive information delivery.
Competitions
Luxembourgs biggest print and digital media publisher relies on SMS Premium for competitions with its publications (Wort, Télécran …)
Donation
Amnesty international supporters may donate by subscribing to the NGO’s newsletter that will be sent to them in a Premium SMS text message once or twice a month (charged at a Premium SMS price point).
Payments
Street parking payments on the Ville de Luxembourg territory can be triggered through Premium SMS text messages (Call2Park). It is a hybrid setup where SMS texts are charged at a 2 x 0.25 EUR Premium rate, but the actual fee for the parking is paid with bank credit/debit cards.
Payments
Also known as “Allopass”, this international player allows users to pay for getting access to digital content published and operated by a variety of digital service editors (dating, gaming, social networks…).
Regulatory background
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Are Mobile operator payment services (Premium SMS direct billing) regulated by the 2nd Payment Services Directive (PSD2)?
No, mobile operator payment services are excluded from the scope of the services covered by the PSD2*, at the conditions that:
- Each individual payment is below 50 euros
- All cumulative payments by a subscriber per month are no more than 300 euros.
Yet, the above mentioned mobile operator payment services are nonetheless subject to thorough quality controls with mobiles operators and aggregators promoting best practices, guidelines and self-regulation frameworks and initiatives in the industry.
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*Article 3 (“Exclusions”) of the PSD2 (transposed in Luxembourg by the law of 20 July 2018 amending the Law of 10 November 2009 on payment services) excludes payment transactions by providers of electronic communications networks or services provided in addition to electronic communications services for a subscriber to the network or service for purchase of digital content and voice-based services up to the thresholds mentioned above. The mobile operator payment services provided therefore do not trigger the application of PSD2 obligations.
