Google is in talks with Airtel to allow customers of the mobile operator to pay for digital items such as e-books, paid apps and in-app purchases through their service provider, reports the Economic Times. This would greatly benefit the Indian smartphone users who do not use credit cards. 

Such a tie-up can significantly boost Google's digital goods business, benefiting both the app developers and content creators.

This tie-up would enable Google to sell its apps and digital content to Airtel’s 40 million data subscribers in India, without having to collect their banking details. Out of the total 40 million subscribers, 12.5 million are on 3G. Presently, people can purchase the digital items through through credit cards, debit cards or gift cards.

Industry experts call this practice of allowing customers to charge their digital purchases directly to their phone bills as 'carrier billing'. With only 2% credit card penetration and many people who are not comfortable making digital payments, operator billing has a huge potential to boost digital goods business.

Google and Airtel are expected to announce a deal once they agree on revenue sharing and receive regulatory clearance. An undisclosed source was quoted in the Economic Times as saying, "Google was asking for as much as 90% of the revenues."

Traditionally, Operators have been taking over 50% of the revenues. However, operators have been under pressure to pay out more to publishers and developers.

Google's digital goods and apps business is expected to bring in over $5 billion in revenues by 2017 worldwide.