fortumo emerging markets payment index: q2 2016

Emerging MarketsPayment Index: Q2 2016Report by Fortumo

Emerging Markets Payment Index: Q2 2016

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.

Issues preventing spread of traditional banking services in growing economies (identity and reputation management, debt enforcement, informal economies) are entrenched in these countries and not getting solved any time soon. India and Vietnam have a credit card penetration below 4%. In Nigeria 99.3% of all card transactions are conducted on ATMs. At the same time, these markets are not “mobile first”, 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.

Introduction

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

http://databank.worldbank.org/data/reports.aspx?source=1228#

http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020%5Bv2%5D.pdf


Currency: 1 Indian Rupee (INR) = $0.015

22%Smartphone penetration (of all mobile phones):

1 billion

Mobile broadband access:

Prepaid SIM market share:

15%

95%

Mobile phones in market:

1.3 billionPopulation:

Gross National Income (GNI) per capita (IMF 2014 estimate):

$2,000Median age:

27 years

Credit & debit card penetration:

4% / 22%

Quarterly ARPPU Average Payment Size

Carrier billing ARPPUQ1 ‘16:

Q2 ‘16:

Carrier billing ARPPU change QoQ:

Transaction Volume ChangeCarrier billing transaction volume change QoQ:

Carrier billing average transaction sizeQ1 ‘16:

Q2 ‘16:

Carrier billing payment size change QoQ:

$5.8

$6.2

+7%

$1.5

$1.6

+7%

-11%* - 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.

India

(exchange rate as of June 30th, 2016)


1 Nigerian Naira (NGN) = $0.0035


151 million



24%

97%


185 millionPopulation:


$3,000Median age:

18 years


2% / 35%



Q2 ‘16:




Q2 ‘16:


$2.4

$2.1

-13%

$0.3

$0.3

0%

-1%

Nigeria



Currency: 1 Pakistani Rupee (PKR) = $0.0096


128 million



19%

96%




$1,000Median age:

22 years


0.1% / 2%



Q2 ‘16:




Q2 ‘16:


$4.4

$8.9

+102%

$0.8

$1

+25%

-1%

Pakistan



Currency: 1 Vietnamese Dong (VND) = $0.000045


120 million



26%

89%




$2,000Median age:

29 years


0.1% / 2%



Q2 ‘16:




Q2 ‘16:


$2.5

$2.4

-4%

$0.5

$0.5

0%

-3%

Vietnam



Currency: 1 Bangladeshi Taka (BDT) = $0.013


133 million



13%

97%




$1,000Median age:

24 years


0.3% / 5%


Carrier billing ARPPU

Q2 ‘16:

Carrier billing average transaction size

Q2 ‘16: $0.9 $0.4

* - Fortumo launched carrier billing in Bangladesh during Q2 2016. Due to this, historical data is not yet available.

Bangladesh



Currency: 1 Brazilian Real (BRL) = $0.31


248 million



73%

74%




$12,000Median age:

30 years


32% / 59%



Q2 ‘16:




Q2 ‘16:


$10.1

$10.8

+7%

$1.4

$1.6

+14%

-1%

Brazil



Currency: 1 Egyptian Pound (EGP) = $0.11


94 million



42%

89%




$3,000Median age:

25 years


2% / 9%



Q2 ‘16:




Q2 ‘16:


$5

$4.3

-14%

$0.4

$0.4

0%

-16%

Egypt



Currency: 1 Indonesian Rupiah (IDR) = $0.000076


334 million



37%

98%




$4,000Median age:

29 years


1% / 26%



Q2 ‘16:




Q2 ‘16:


$5.5

$5.3

-4%

$0.7

$0.9

+29%

-4%

Indonesia



Currency: 1 Philippine Peso (PHP) = $0.021


122 million



45%

95%




$4,000Median age:

23 years


3% / 20%



Q2 ‘16:




Q2 ‘16:


$18.9

$26.7

+41%

$3

$2.8

-7%

+229%

Philippines


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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 readingHow 5 top digital merchants use localized pricing to boost revenue

14 free resources for digital commerce and mobile payments research

How to integrate different payment methods into your checkout process?

https://blog.fortumo.com/how-to-integrate-different-payment-methods-into-your-checkout-process/

https://blog.fortumo.com/14-free-resources-for-digital-commerce-and-mobile-payments-research/

https://blog.fortumo.com/how-5-top-digital-merchants-use-localized-pricing-to-boost-revenue/

fortumo emerging markets payment index: q2 2016

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