Emerging MarketsPayment Index: Q3 2015

Report by Fortumo

Emerging Markets Payment Index: Q3 2015

The Emerging Markets Payment Index focuses on markets highlighted by GfK in its global forecast of top smartphone markets for growth by value in 2015: India, Indonesia, South Africa, Brazil, Pakistan, Nigeria, Egypt and Vietnam*. These markets have a significantly lower level of access to traditional online payments than mature economies. India and Vietnam for example have a credit card penetration below 2% and in Nigeria 99.3% of all card transactions are conducted on ATMs.

The payment index aggregates carrier billing data from various platforms (web, mobile web, feature phones, smartphones) and app stores using Fortumo carrier billing.

* - China and Bangladesh have been omitted from the index as Fortumoprovides carrier billing only for Android developers in China and does notoperate in Bangladesh.

The Emerging Markets Payment Index is intended to be used by web, game and app developers for benchmarking their revenue in markets with high smartphone growth and low credit card penetration.

Introduction

Emerging Markets Payment Index: Q3 2015

IndiaPopulation:

1237 millionMedian age:

25.9Phone penetration:

70.33%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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Carrier billing ARPPU change QoQ:

Transaction Volume ChangeCarrier billing transaction volume change QoQ:

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GDP per capita:

$5,855

Credit & debit card penetration:

$2.86$2.93

+2.4%

$0.62$0.54

-12.9%

-25.7%

2% / 8%World Bank, 2011

* - ARPPU stands for average revenue per paying user, not to be confused with ARPU (average revenue per user). ARPPU is calculated by dividing the total money spent by users with the number of unique users who made payments.

Emerging Markets Payment Index: Q3 2015

PakistanPopulation:

182 millionMedian age:

21.2Phone penetration:

71.56%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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GDP per capita:

$4,736

Credit & debit card penetration:

$2.73$2.68

-1.8%

$0.31$0.52

+67.7%

+67.9%

1% / 3%

Emerging Markets Payment Index: Q3 2015

IndonesiaPopulation:

237 millionMedian age:

27.9Phone penetration:

99.33%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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GDP per capita:

$10,641

Credit & debit card penetration:

$7.83$6.13

-21.7%

Carrier billing average payment size�4��¶���� $0.9

$0.83

-7.8%

+27.5%

0% / 11%

Emerging Markets Payment Index: Q3 2015

VietnamPopulation:

90 millionMedian age:

27.4Phone penetration:

72.3%

Quarterly ARPPU Average Payment Size

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GDP per capita:

$5,635

Credit & debit card penetration:

Carrier billing ARPPU�4��¶���� $3.51

$3.08

-14%

Carrier billing average payment size�4��¶���� $0.44

$0.45

+2.3%

-14.7%

1% / 15%

Emerging Markets Payment Index: Q3 2015

BrazilPopulation:

201 millionMedian age:

30.5Phone penetration:

130.85%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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Carrier billing ARPPU change QoQ:

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GDP per capita:

$16,096

Credit & debit card penetration:

$17.02$13.31

-21.8%

$1.85$1.57

-15.1%

+12.2%

29% / 41%

Emerging Markets Payment Index: Q3 2015

NigeriaPopulation:

173 millionMedian age:

19.1Phone penetration:

65.67%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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Carrier billing ARPPU change QoQ:

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GDP per capita:

$6,031

Credit & debit card penetration:

$2.81$2.72

-3.2%

$0.38$0.38

0%

-14.4%

1% / 19%

Emerging Markets Payment Index: Q3 2015

EgyptPopulation:

83 millionMedian age:

24.0Phone penetration:

91.39%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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Carrier billing ARPPU change QoQ:

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GDP per capita:

$10,877

Credit & debit card penetration:

$4.63$4

-13.6%

$0.51$0.45

-11.8%

+9.9%

1% / 5%

Emerging Markets Payment Index: Q3 2015

South AfricaPopulation:

52 millionMedian age:

24.7Phone penetration:

112.48%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPU

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Carrier billing ARPPU change QoQ:

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GDP per capita:

$13,046

Credit & debit card penetration:

$13.72$11.85

-13.6%

$2.38$2.22

-6.7%

+16.5%

8% / 45%

Additional reading

Carrier billing in India – market report by Fortumo

How to avoid cannibalization between online payment methods – white paper by Fortumo

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Fortumo allows any merchant to set up payment processing for web and mobile services, games or apps. Users with a mobile phone are then able to make one-click payments using Fortumo without the need for a credit card: payments are charged to their mobile operator bill instead. Fortumo supports payments in more than 90 countries through 350 mobile operators. Founded in 2007, Fortumo has offices in Estonia, San Francisco, Beijing, Delhi, Mumbai, Singapore and London and is backed by Intel Capital and Greycroft Partners. Get started with mobile payments at https://fortumo.com.

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