fortumo emerging markets payment index: q3 2016

Emerging MarketsPayment Index:Q3 2016Report by Fortumo

The Emerging Markets Payment Index focuses on countries highlighted by GfK in its global

forecast as the largest tech device growth markets of 2015. These countries are India, Nigeria,

Pakistan, Vietnam, Bangladesh, Brazil, Egypt, Indonesia and Philippines.

Growth in these markets is beginning to ramp up because people’s income is low and

smartphones have been expensive. However, cheap smartphones are changing this. Globally, the

price of an iPhone is around $700 while the price of an Android phone is around $200. There are

even cheaper phones available at sub $100 prices and these will be driving growth of the mobile

ecosystem in the few next years.

Still, payment collection in these markets remains a challenge for digital content merchants.

Credit card ownership is in the low double digits or single digits. At the same time, these markets

are not “mobile �rst”, but “mobile only”: for most people, their smartphone is the only way to

connect to the internet. This makes carrier billing the ideal solution for collecting payments from

them, as traditional payment access is limited and carrier billing provides the best purchasing

experience out of all payment methods on mobile devices.

The payment index aggregates carrier billing data from various platforms (web, mobile web,

feature phones, smartphones) and app stores using Fortumo carrier billing.

Should you have any questions about the report, please get in touch with us at [email protected].

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

IntroductionEmerging Markets Payment Index: Q3 2016

http://www.prnewswire.com/news-releases/tech-devices-in-2015-emerging-markets-dominate-growth-increasing-by-10b-277550901.html

http://www.prnewswire.com/news-releases/tech-devices-in-2015-emerging-markets-dominate-growth-increasing-by-10b-277550901.html

https://theoverspill.wordpress.com/2016/02/24/q4-2015-apple-android-pricing-rattrap-smartphone-profit/

India

GNI per capita:Median age:

27

20%

1300Smartphone

penetration (of all mobile phones):

Population:

$2,000

15%

Mobilebroadband

access:

95%

Prepaid SIMmarket share:

Credit cardpenetration:

2%

million years Gross National Income (IMF 2014 estimate)

Currency:

Exchange rate as of October 13th, 2016

77%

Mobile penetration (from

population):

1 Indian Rupee (INR) = $0.015

Carrier billing quarterly ARPPU Carrier billing average transaction size

Q2 ‘16: Q3 ‘16: Change QoQ:

Carrier billing transaction volume change QoQ:

$6.2 $4.6 -26%Q2 ‘16: Q3 ‘16: Change QoQ:

$1.6 $1.1 -31%

+13%

* - 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 2016

Nigeria


18

30%

185Smartphone


Population:

$3,000

24%

Mobilebroadband

access:

97%



3%


Currency:


81%


population):

1 Nigerian Naira (NGN) = $0.0032




$2.1 $2.1 0%Q2 ‘16: Q3 ‘16: Change QoQ:

$0.3 $0.3 0%

+321%


Pakistan


23

31%

191Smartphone


Population:

$1,000

19%

Mobilebroadband

access:

96%



0.1%


Currency:


67%


population):

1 Pakistani Rupee (PKR) = $0.0096




$8.9 $10.9 +22%Q2 ‘16: Q3 ‘16: Change QoQ:

$1 $1.1 +10%

-40%


Vietnam


29

42%

94Smartphone


Population:

$5,000

26%

Mobilebroadband

access:

89%



2%


Currency:


100%


population):

1 Vietnamese Dong (VND) = $0.000045




$2.4 $2.7 +13%Q2 ‘16: Q3 ‘16: Change QoQ:

$0.5 $0.5 0%

+1%


Bangladesh


24

20%

162Smartphone


Population:

$1,000

13%

Mobilebroadband

access:

97%



0.3%


Currency:


82%


population):

1 Bangladeshi Taka (BDT) = $0.013




$0.4 $0.9 +125%Q2 ‘16: Q3 ‘16: Change QoQ:

$0.4 $0.5 +25%

+12%


Brazil


31

55%

209Smartphone


Population:

$12,000

73%

Mobilebroadband

access:

74%



32%


Currency:


100%


population):

1 Brazilian Real (BRL) = $0.31




$10.8 $12.5 +16%Q2 ‘16: Q3 ‘16: Change QoQ:

$1.6 $1.9 +19%

-20%


Egypt


25

22%

92Smartphone


Population:

$3,000

42%

Mobilebroadband

access:

89%



2%


Currency:


100%


population):

1 Egyptian Pound (EGP) = $0.11




$4.3 $4.9 +14%Q2 ‘16: Q3 ‘16: Change QoQ:

$0.4 $0.4 0%

+2%


Indonesia


29

40%

259Smartphone


Population:

$4,000

37%

Mobilebroadband

access:

98%



2%


Currency:


100%


population):

1 Indonesian Rupiah (IDR) = $0.000077




$5.3 $6.5 +23%Q2 ‘16: Q3 ‘16: Change QoQ:

$0.9 $1.1 +22%

+26%


Philippines


24

40%

102Smartphone


Population:

$4,000

45%

Mobilebroadband

access:

95%



3%


Currency:


100%


population):

1 Philippine Peso (PHP) = $0.021




$26.7 $17.3 -35%Q2 ‘16: Q3 ‘16: Change QoQ:

$2.8 $1.7 -40%

+44%


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Fortumo is a mobile payments company that enables direct carrier billing with more than 350 mobile operators in 90+ countries. Fortumo's payment products work across a wide range of platforms including desktop devices, smartphones, feature phones, tablets and smart TV-s. These products give consumers a simple, 1-click payment method to charge online purchases to their phone bill. For app stores, digital media companies and game developers, Fortumo provides one integration with 350 mobile operators as well as a single point of contact for settlements, reporting, support and infrastructure upgrades. Founded in 2007, Fortumo has offices in Estonia, San Francisco, Beijing, Delhi, Singapore & Hanoi and is backed by Intel Capital and Greycroft Partners.

This document is for informational purposes only. Fortumo and the authors make no expressed or implied warranties in this document. Fortumo and the author(s) make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in this document. Any opinions expressed in this document are subject to change without notice. This document may be based on a number of assumptions and different assumptions could result in materially different results. This document should not be regarded by recipients as a substitute for obtaining independent advice and/or the exercise of their own judgement, and is not to be relied upon by recipients. Fortumo and the authors, and any of their members, directors, employees or agents do not accept any liability for any loss or damage arising out of the use of all or any part of this document. Copyright © 2016 Fortumo | All rights reserved.

Additional readingCarrier billing in India: 2016 market report by Fortumo

Carrier billing in Asia: 2016 market report by Fortumo

Why does localization matter more than ever before?

https://blog.fortumo.com/why-does-localization-matter-more-than-ever-before/

https://blog.fortumo.com/carrier-billing-in-asia-2016-market-report-by-fortumo/

https://blog.fortumo.com/carrier-billing-in-india-2016-market-report-by-fortumo/

fortumo emerging markets payment index: q3 2016

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