carrier billing in central & eastern europe: 2017 market report

Carrier billing in 2017: Central & Eastern EuropeMarket report by Fortumo

Carrier billing in 2017: Central & Eastern Europe

Fortumo’s market report on Central & Eastern Europe pro�les carrier billing landscape in the 10 biggest countries of the region. By population, these countries are Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia. While equal in size to the EU5 (France, Germany, Italy, Spain & UK) or US in terms of population, they are signi�cantly more fragmented. Localization of both the digital service provided and payment methods is a key to succeed in the region.

Central & Eastern Europe is in an intermediate phase between Western markets and quickly growing emerging markets. There is relatively high ownership of traditional desktop devices, which means traditional software vendors and PC game developers have signi�cant potential in the region. In all of the markets pro�led all but one country has reached smartphone ownership above 50%, which opens up new growth opportunities for digital merchants. At the same time, access to bank-based payments remains low, making carrier billing the perfect alternative to collect payments from Central & Eastern Europe.

From this report, you will �nd a high-level overview of the digital ecosystem in each country. Additionally, we provide data on carrier billing in the country: money spent per user on digital services as well as pricing dynamics of the market which help you �ne-tune your monetization strategy.

In addition to carrier billing we recommend looking into the following local payment methods for the region: Yandex Money, QIWI, WebMoney, Przelewy24, PaysafeCard and Skrill. To learn how to add several payment methods to your checkout without risking revenue loss from cannibalization, check out our white paper.

Introduction

Mattias LiivakHead of Marketing & PRFortumo

If you have any questions about the data in this report, please reach out to us at [email protected].

Andrea BoettiVP of Global Business Development & SalesFortumo

https://www.slideshare.net/fortumo/how-to-avoid-cannibalization-between-online-payment-methods-white-paper-by-fortumo

https://www.skrill.com/en/home/

https://www.paysafecard.com

http://www.przelewy24.pl/en

http://www.wmtransfer.com/

https://qiwi.ru/

https://money.yandex.ru/new/

https://money.yandex.ru/new/

Market profile December 2016 - February 2017

Russia

GNI per capita:Median age:

39143Population:

$13,000143Mobile users:

1 Russian Ruble (RUB) = $0.017

million years Gross National Income (IMF 2014 estimate)

million

Currency:

59%

Smartphonepenetration (of all

mobile phones):Credit card

penetration:

21%41%

Mobile broadband

access:

78%

Prepaid SIMmarket share:

Debit cardpenetration:

44%


CARRIERS SUPPORTED BY FORTUMO

Carrier billing landscape December 2016 - February 2017

Russia

34%

25%

24%

15%

2%

CARRIERMARKETSHARES

Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method)

0.8 1.12 2.23 2.28 3.82

Price point Popularity % Price point Revenue %


LOCALIZATION

Recommended, 84% of users have browser language set to Russian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.

84%

76%

TABLET

DESKTOP

MOBILE

19%

5%

TRAFFICSOURCES

Price point (in USD)

3.91 4.78 4.89 7.96 8.14

Quarterly average revenue per user:

Quarterly median revenue per user:

% denotes YoY change

$16.8

$6.7 10%

42%


19.8%

5.4%

9.4%

3.6%

31.8%

24%

7.9%6.1%

3.8%5%

1.2%1.5%

12%

19.4%

3.1%

5.1%8.5%

23%

2.5%

6.9%

https://www.superdataresearch.com/


Ukraine


4045Population:


1 Ukrainian Hryvnia (UAH) = $0.037


million

Currency:


58%



penetration:

28%16%

Mobile broadband

access:

91%



40%



Ukraine

43%

35%

21%

1%

CARRIERMARKETSHARES

Market share of carrier billing in digital gaming (SuperdataResearch): 7% (4th most popular payment method)

0.18 0.54 0.72 0.73



LOCALIZATION

Localization: Recommended, 78% of users have browser language set to Russian.

78%

56%

TABLET

DESKTOP

MOBILE

32%

12%

TRAFFICSOURCES


1.09 1.81 1.82




$6.8

$3.3 7%

10%


10.2%

2.1%

40.1%

24.6%

0.5%0.4%

2.8%2.3%

30.5%

37.8%

3%

6.1%

12.9%

26.7%



Poland


4039Population:


1 Polish Zlot (PLN) = $0.24


million

Currency:


53%



penetration:

17%65%

Mobile broadband

access:

44%



50%



Poland

30%

28%

26%

16%

CARRIERMARKETSHARES

Market share of carrier billing in digital gaming (SuperdataResearch): 19% (2nd most popular payment method)

1.15 1.2 1.73 1.81 2.59



LOCALIZATION

Recommended, 94% of users have browser language set to Polish.


94%

58%

TABLET

DESKTOP

MOBILE

35%

7%

TRAFFICSOURCES


2.71 5.47 5.72 7.19 7.53




$19.6

$12.1 28%% denotes YoY change

31%

10.6%0.3%0.1%

13.4%

6.9% 0.3%0.2%

14.4%

11.1% 1.3%1%

25.3%

41.3%

3%

5.2% 10%

21.5%

0.9%2%

34%



Romania


4119Population:


1 Romanian Leu (RON) = $0.23


million

Currency:


50%



penetration:

12%56%

Mobile broadband

access:

55%



46%



Romania

10%

37%

29%

24%

CARRIERMARKETSHARES

Market share of carrier billing in digital gaming (SuperdataResearch): 16% (3rd most popular payment method)



LOCALIZATION

Recommended, 69% of users have browser language set to Romanian.


69%

68%

TABLET

DESKTOP

MOBILE

27%

5%

TRAFFICSOURCES





$27.6

$11.4 25%

26%

% denotes YoY change1.25 1.26 3.76 3.79 6.26 6.31 12.52 12.63 12.85 25.71

25.4%

7.1%

29.2%

8.2%

8.7%

7.3%

8.8%

7.5%4.4%

6.2%

4.6%

6.5% 5.8%

16.2%

9%

25.4%

2.7%

7.6%

1.4%

7.9%



Czech Republic


4211Population:


1 Czech Koruna (CZK) = $0.039


million

Currency:


58%



penetration:

26%54%

Mobile broadband

access:

37%



64%



Czech Republic

39%

36%

25%

CARRIERMARKETSHARES

Market share of carrier billing in digital gaming (SuperdataResearch): 21% (3rd most popular payment method)


LOCALIZATION

Recommended, 92% of users have browser language set to Czech.


92%

43%

TABLET

DESKTOP

MOBILE

52%

5%

TRAFFICSOURCES




$19.2

$5.8 37%

5%




1.15 1.2 1.73 1.81 2.59 2.71 5.47 5.72 7.19 7.53

67.1%

41.6%

15.9%

10.1%

3.9%

4.8% 2.3%5.6%

0.7%1.7% 5.2%

16%

1.4%4.3%

2.2%

8.1%

0.5%2%

0.8%

5.6%



Hungary


4210Population:


1 Hungarian Forint (HUF) = $0.0034


million

Currency:


61%



penetration:

12%56%

Mobile broadband

access:

43%



60%



Hungary

46%

31%

23%

CARRIERMARKETSHARES


LOCALIZATION

Recommended, 96% of users have browser language set to Hungarian.

96%

84%

TABLET

DESKTOP

MOBILE

10%

6%

TRAFFICSOURCES




$13.5

$5.1

10%




1.02 1.04 1.69 1.73 3.39 3.47 6.78 6.94

0.2%0.1%

0.1%0.1%

62.1%

39%

14.7%

9.5%4.1%5.2%

0.9%1.2%

14.7%

36.9%

3.1%

8.1%

(unchanged)


Azerbaijan


3110Population:


1 Azerbaijan Manat (AZN) = $0.56


million

Currency:


31%



penetration:

9%37%

Mobile broadband

access:

84%



16%



Azerbaijan

55%

41%

7%

CARRIERMARKETSHARES


LOCALIZATION



57%

41%

TABLET

DESKTOP

MOBILE

52%

7%

TRAFFICSOURCES




$13.7

$6.3 24%

8%




0.58 0.64 1.19 1.28 1.79 1.92 1.93 2.97 2.98 3.21

1.7%0.6%

0.5%0.2%

10.1%

7.7%

55.3%

45.2%

4.7%

5.4%

1.2%1.5%

17.9%

22%

0.1%0.3% 1%

1.8% 7.5%

15.3%


Belarus


4010Population:


1 Belarussian Ruble (BYR) = $0.00005


million

Currency:


59%



penetration:

14%42%

Mobile broadband

access:

53%



40%



Belarus

47%

41%

11%

CARRIERMARKETSHARES


LOCALIZATION



95%

37%

TABLET

DESKTOP

MOBILE

60%

3%

TRAFFICSOURCES




$10.9

$6.7% denotes YoY change



1.22 1.27 1.52 1.58 1.71 1.78 1.83 1.9 2.2 2.29

4.7%3.1%

6.5%

4.4%

9.8%

8% 2.2%1.8%

11.6%

10.6% 3.6%

3.5%

18.5%

18.1%

5.3%

5.4%

30.8%

36.4%

7.1%8.8%

20%

26%


Bulgaria


427Population:


1 Bulgarian Lev (BGN) = $0.54


million

Currency:


53%



penetration:

12%43%

Mobile broadband

access:

22%



56%



Bulgaria

45%

40%

15%

CARRIERMARKETSHARES


LOCALIZATION

Recommended, 71% of users have browser language set to Bulgarian.


71%

30%

TABLET

DESKTOP

MOBILE

66%

4%

TRAFFICSOURCES




$12.3

$7.7 2%% denotes YoY change



1.27 1.3 2.53 2.6 3.16 3.25 5.27 7.91 10.54 10.81

18.1%

9.4% 4.2%2.2%

45.7%47.2%

11.8%

12.5%

15%

19.3%

4%

5.3%

0.4%0.8%

0.3%1%

0.5%2%

0.1%0.3%

18%


Serbia


429Population:


1 Serbian Dinar (RSD) = $0.0085


million

Currency:


51%



penetration:

15%44%

Mobile broadband

access:

49%



58%



Serbia

53%

31%

16%

CARRIERMARKETSHARES


LOCALIZATION

Recommended, 57% of users have browser language set to Serbian.


57%

31%

TABLET

DESKTOP

MOBILE

39%

30%

TRAFFICSOURCES




$15.5

$8.1

14%




1.5 1.53 2 2.04 3 3.06 5.79 5.91 7.99 8.15

30.8%

15.4%8.5%

4.3%

21.1%

14% 3.2%2.2%

12.7%

12.7%

3.5%

3.6% 6.5%

12.6%

1.8%3.5%

9.6%

25.5%

2.3%

6.3%

30%

Additional reading

Fortumo launches Bundling Platform for digital content merchants

Read now

Carrier billing in the Nordics: 2016 market report by Fortumo

Read now

Carrier billing in Middle East & Africa: 2016 market report by Fortumo

Read now

https://fortumo.com/blog/carrier-billing-in-middle-east-africa-2016-market-report-by-fortumo/

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

https://fortumo.com/press/fortumo-launches-bundling-platform-for-digital-content-merchants/

https://fortumo.comhttps://facebook.com/fortumohttps://twitter.com/fortumohttps://www.linkedin.com/company/fortumo-ltd.

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 o�ces 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 di�erent assumptions could result in materially di�erent 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, direc-tors, 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.

https://www.linkedin.com/company-beta/375873/?pathWildcard=375873

https://twitter.com/fortumo

https://facebook.com/fortumo

https://fortumo.com/

carrier billing in central & eastern europe: 2017 market report

Technology