fortumo emerging markets payment index q4 2016

Emerging MarketsPayment Index:

Market report by Fortumo

Q4 2016

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.

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.

Introduction

Emerging Markets Payment Index: Q4 2016

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

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/

* - 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.


17%

India

Mobile phones:

20%

Smartphone penetration:

Debit cardpenetration:

22%15%

Mobilebroadband access:

95%

Prepaid SIMmarket share:

Credit cardpenetration:

2%

GNI per capita:Median age:

271300Population:

$2,000million years Gross National Income

(IMF 2014 estimate)

1000million

Currency:

Exchange rate: January 6th, 2017

1 Indian Rupee (INR) = $0.015

Q4 '16 | Change QoQ Q4 '16 | Change QoQ Q4 '16 | Change QoQ Q4 '16 | Change QoQ Change QoQ

$5.4

QuarterlyARPPU*:

Quarterly medianARPPU:

Average transaction size:

Median transaction size:

$3 $1.3 $0.8

Transaction volumechange QoQ:

CARRIER BILLING KEY STATISTICAL INDICATORS

25% 18% 13%UNCHANGED


25% 32% 23%

Nigeria

Mobile phones:

30%



36%24%


97%



3%


18185Population:


(IMF 2014 estimate)

151million

Currency:


1 Nigerian Naira (NGN) = $0.0032


$1.5

QuarterlyARPPU*:




$0.6 $0.2 $0.2



20% 8%


6% 5% 9%

Pakistan

Mobile phones:

31%



3%19%


96%



0.1%


23191Population:


(IMF 2014 estimate)

128million

Currency:


1 Pakistani Rupee (PKR) = $0.0095


$10.2

QuarterlyARPPU*:




$2.1 $1 $0.5



23% 23%


7%

Vietnam

Mobile phones:

42%



27%26%


89%



2%


2994Population:


(IMF 2014 estimate)

120million

Currency:


1 Vietnamese Dong (VND) = $0.000044


$2.9

QuarterlyARPPU*:




$1.7 $0.5 $0.5



UNCHANGEDUNCHANGED 6%UNCHANGED


11% 4%

Bangladesh

Mobile phones:

20%



5%13%


97%



0.3%


24162Population:


(IMF 2014 estimate)

133million

Currency:


1 Bangladeshi Taka (BDT) = $0.013


$4.9

QuarterlyARPPU*:




$1.7 $0.5 $0.5



UNCHANGEDUNCHANGED 10%


21% 5%6%

Brazil

Mobile phones:

55%



59%73%


74%



32%


31209Population:


(IMF 2014 estimate)

209million

Currency:


1 Brazilian Real (BRL) = $0.31


$10.2

QuarterlyARPPU*:




$5.6 $1.8 $1.9



UNCHANGED 2%


12% 15% 30%

Egypt

Mobile phones:

22%



10%42%


89%



2%


2592Population:


(IMF 2014 estimate)

94million

Currency:


1 Egyptian Pound (EGP) = $0.055


$4.3

QuarterlyARPPU*:




$1.5 $0.3 $0.3



32% 2%


3%

Indonesia

Mobile phones:

40%



26%37%


98%



2%


29259Population:


(IMF 2014 estimate)

340million

Currency:


1 Indonesian Rupiah (IDR) = $0.000075


$6.7

QuarterlyARPPU*:




$3 $1.1 $0.9



UNCHANGEDUNCHANGEDUNCHANGED 13%


5% 4% 11%

Philippines

Mobile phones:

40%



21%45%


95%



3%


24102Population:


(IMF 2014 estimate)

122million

Currency:


1 Philippine Peso (PHP) = $0.02


$16.4

QuarterlyARPPU*:




$8.6 $1.5 $0.8



UNCHANGED 45%

Additional reading

What metrics to measure for your payment solutions?

Read now

How to do a background check on your carrier billing provider?

Read now

Who to partner with to launch carrier billing?

Read now

https://fortumo.com/blog/who-to-partner-with-to-launch-carrier-billing/

https://fortumo.com/blog/how-to-do-a-background-check-on-your-carrier-billing-provider/

https://fortumo.com/blog/what-metrics-to-measure-for-your-payment-solutions/

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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 © 2017 Fortumo | All rights reserved.

fortumo emerging markets payment index q4 2016

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