Making money from mobile web in latin america

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Making money from mobile web in latin america

  1. 1. Making Money From the Mobile Web in Latin America Wayne Thorsen Vice President, Global PartnershipsTelefonica Digital12.11.2012
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  3. 3. Carrier Billing: What it is What is Carrier Billing Enables customers to charge goods to their operator account Key AspectsCurrently only available for digital goods (such as mobile games, digital content, virtual credits, etc.) but options exist to extend to physical Available for both Pre Pay and Post Pay customers, though they each have different requirements and costs Currently, Telefónica is actively participating in Carrier Billing in Europe (with various partners) and Brazil, Argentina , Colombia and Mexico , with trials being done in other countries 3
  4. 4. The press is awash with news of Carrier Billingand its rapid growth 4
  5. 5. Carrier billing looks to have a robust future Value of in-payment transactions (US $M) • A steep rise in the volume & value of mobile payments over the next 2-3 yearsSource: Gartner 2012 Mobile Application Downloads Billed by Carrier (Forecast) 70% 60% • Carrier Billing is predicted to grow steadily 50% in Europe, with a much 40% faster increase in Brazil 30% and Latin America 20% 10% 0% 2012E 2013E 2014E 2015E 2016E As Percentage of total Source: Yankee Group 5
  6. 6. The market potential is hugeLatAm Virtual Goods Brazil, Colombia, Peru, Argentina and Mexico driving the growth. With $336 Million in 2010, the market is expected to reach $517M in 2012 24% YoY Growth 6
  7. 7. Carrier Billing brings significant value compared with traditional payment methods CONVENIENCE UNIVERSAL Thanks to a simple, fast and Thanks to mobile penetration, impulsive check-out process included as standard (no registration process) capability 7% 5% 10% Others 27% 35–49 13–17 39% End-user demand for 17% Convenience25–34 56% mobile phone payments No credit 39% card 18–24 Age segmentation on D2B Why did you pay by mobile? LACK OF OPTIONS CONVERSION RATEThe youth segment (for virtual Much higher % of clientsgoods) has no access to credit finishing the purchase cards) (sales x7) 7
  8. 8. Mobile and financial services penetration • Success in mobile financial services = a high mobile penetration + a relatively low penetration of financial • Mobile penetration already exceeds 100 per cent in many countries, as some individuals have multiple lines • A more eloquent form of displaying this relationship = the ratio of mobile to financial services penetration 8
  9. 9. This results in different opportunities within developingeconomies Developing economies Direct operator Enabling direct operator billing for billing digital goods and services. Transport ticketing [Limited mass transport infrastructure.] Enabling money transfers to Mobile transfers merchants and billers. Enabling small merchants to accept Mobile point of sale payments with a mobile. Mobile contactless [Limited point of sale infrastructure.] payments Mobile digital wallets Enabling mobile digital wallets. Remittances Enabling cross-border remittances. Selling financial Distributing simple financial products products to unbanked customers. Source: Forrester Research 9
  10. 10. Telefónica offers carrier billing to key partners 10
  11. 11. Get in touch Explore our Hub: http://www.telefonica.com/digitalhub Track us on Twitter: http://www.twitter.com/tefdigital Watch our latest videos: http://www.youtube.com/telefonicadigital Look us up on LinkedIn: http://www.linkedin.com/company/telef-nica-digital 11

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