Carrier billing in 2016 - Middle East & Africa

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Fortumo's latest market report gives an overview of the mobile payments landscape of the Middle Eastern and African regions.

This report covers 12 markets where Fortumo has coverage. These markets are: Nigeria, Egypt, Turkey, South Africa, Kenya, Ethiopia, Saudi Arabia, Iraq, Morocco, Cote d’Ivoire, United Arab Emirates and Kuwait.

The Middle Eastern and African regions are very diverse and economic well-being, access to online payments and user spending can dier ten-fold even in neighboring countries. This market report aims to help digital services merchants understand these dierences and fine-tune their content and monetization strategy to maximize revenue from each market.

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. For more information, please visit https://fortumo.com.

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Carrier billing in 2016 - Middle East & Africa

  1. 1. Carrierbillingin2016: Middle East & Africa Market report by Fortumo
  2. 2. This market report gives an overview of the mobile payments landscape of the Middle East and Africa. It covers 12 markets where Fortumo has coverage. These markets are: Nigeria, Egypt, Turkey, South Africa, Kenya, Ethiopia, Saudi Arabia, Iraq, Morocco, Cote d’Ivoire, United Arab Emirates and Kuwait. This region is very diverse and economic well-being, access to online payments and user spending can differ ten-fold even in neighboring countries. This market report aims to help digital services merchants understand these differences and fine-tune their content and monetization strategy to maximize revenue from each market. Carrier billing in 2016: Middle East & Africa Introduction
  3. 3. Fortumo’s Middle Eastern & African market report gives a high-level overview of the biggest markets in the region as well as insights on user spending behavior, localization and platform preferences. Data presented in the white paper has been taken from public sources of information as well as anonymized, aggregated data on payments processed by merchants using Fortumo’s cross-platform mobile payments product. Mattias Liivak Head of Marketing & PR Fortumo Should you have any questions about the report, please get in touch with us at bd@fortumo.com. Carrier billing in 2016: Middle East & Africa Andrea Boetti VP of Global Business Development & Sales Fortumo
  4. 4. Nigeria Market profile GNI per capita:Median age: 18 30% 185 Smartphone penetration (of all mobile phones): Population: $3,000151 Debit card penetration: 36% Mobile phones: 1 Nigerian Naira (NGN) = $0.0032 24% Mobile broadband access (of all mobile phones): 97% Prepaid SIM market share: Credit card penetration: 3% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  5. 5. Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 MTN (45%) Airtel (18%) Etisalat (9%) Average transaction size: $0.3 (-40%) 72% 21% 7% Not necessary, 98% of users have browser language set to English. Nigeria Monthly ARPPU: $0.9 (YoY change: -23%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE Traffic sources 0 2.5 5 7.5 10
  6. 6. Egypt Market profile GNI per capita:Median age: 25 22% 92 Smartphone penetration (of all mobile phones): Population: $3,00094 Debit card penetration: 10% Mobile phones: 1 Egyptian Pound (EGP) = $0.11 42% Mobile broadband access (of all mobile phones): 89% Prepaid SIM market share: Credit card penetration: 2% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  7. 7. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Vodafone (40%) Mobinil (36%) Etisalat (24%) Average transaction size: $0.5 (-12%) 51% 43% 6% Recommended, 42% of users have browser language set to Arabic. Egypt Monthly ARPPU: $2.2 (YoY change: +17%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 2.5 5 7.5 10
  8. 8. Turkey Market profile GNI per capita:Median age: 30 50% 79 Smartphone penetration (of all mobile phones): Population: $11,00071 Debit card penetration: 43% Mobile phones: 1 Turkish Lira (TRY) = $0.33 39% Mobile broadband access (of all mobile phones): 54% Prepaid SIM market share: Credit card penetration: 33% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  9. 9. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Turkcell (52%) Vodafone (28%) Türk Telekom (20%) Average transaction size: $5.4 (+140%) 56% 31% 13% Recommended, 92% of users have browser language set to Turkish. Turkey Monthly ARPPU: $9.5 (YoY change: +124%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE Market share of carrier billing in digital gaming (SuperdataResearch): 8% (4th most popular payment method) 0 2.5 5 7.5 10
  10. 10. South Africa Market profile GNI per capita:Median age: 26 37% 55 Smartphone penetration (of all mobile phones): Population: $7,00087 Debit card penetration: 55% Mobile phones: 1 South African Rand (ZAR) = $0.073 41% Mobile broadband access (of all mobile phones): 85% Prepaid SIM market share: Credit card penetration: 14% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  11. 11. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Vodacom (56%) MTN (34%) Cell C (8%) Average transaction size: $2 (-17%) 79% 15% 6% Not necessary, 99% of users have browser language set to English. South Africa Monthly ARPPU: $3.3 (YoY change: -22%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE Telkom (2%) Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method) 0 2.5 5 7.5 10
  12. 12. Kenya Market profile GNI per capita:Median age: 19 15% 47 Smartphone penetration (of all mobile phones): Population: $1,00036 Debit card penetration: 35% Mobile phones: 1 Kenyan Shilling (KES) = $0.0099 19% Mobile broadband access (of all mobile phones): 97% Prepaid SIM market share: Credit card penetration: 5% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  13. 13. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Safaricom (66%) Airtel (26%) Orange (8%) Average transaction size: $0.8 (+60%) 83% 14% 3% Not necessary, 97% of users have browser language set to English. Kenya Monthly ARPPU: $1.8 (YoY change: +29%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 2.5 5 7.5 10
  14. 14. Ethiopia Market profile GNI per capita:Median age: 18 10% 101 Smartphone penetration (of all mobile phones): Population: $55042 Debit card penetration: 0.8% Mobile phones: 1 Ethiopian Birr (ETB) = $0.045 58% Mobile broadband access (of all mobile phones): 98% Prepaid SIM market share: Credit card penetration: 0.4% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  15. 15. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Ethio Telecom (100%) Average transaction size: $0.2 57% 43% Not necessary, 96% of users have browser language set to English. Ethiopia Monthly ARPPU: $0.3 Fortumo launched in Ethiopia during May 2016, historical data is not available. Carrier billing in 2016: Middle East & Africa DESKTOP MOBILE 0 2.5 5 7.5 10
  16. 16. Saudi Arabia Market profile GNI per capita:Median age: 26 57% 32 Smartphone penetration (of all mobile phones): Population: $25,00057 Debit card penetration: 64% Mobile phones: 1 Saudi Riyal (SAR) = $0.27 71% Mobile broadband access (of all mobile phones): 86% Prepaid SIM market share: Credit card penetration: 12% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  17. 17. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 STC (48%) Mobily (37%) Zain (15%) Average transaction size: $3.7 (+26%) 67% 20% 13% Recommended, 50% of users have browser language set to Arabic. Saudi Arabia Monthly ARPPU: $17.4 (YoY change: +7%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 5 10 15 20 Market share of carrier billing in digital gaming (SuperdataResearch): 14% (4th most popular payment method)
  18. 18. Iraq Market profile GNI per capita:Median age: 22 17% 37 Smartphone penetration (of all mobile phones): Population: $7,00031 Debit card penetration: 4% Mobile phones: 1 Iraqi Dinar (IQD) = $0.0086 20% Mobile broadband access (of all mobile phones): 97% Prepaid SIM market share: Credit card penetration: 2% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  19. 19. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Zain (43%) AsiaCell (35%) Korek (22%) Average transaction size: $1.5 (+7%) 79% 14% 7% Recommended, 86% of users have browser language set to Arabic. Iraq Monthly ARPPU: $5.5 (YoY change: -4%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 2.5 5 7.5 10
  20. 20. Morocco Market profile GNI per capita:Median age: 28 32% 35 Mobile broadband access (of all mobile phones): Population: $3,00043 Mobile phones: 1 Moroccan Dirham (MAD) = $0.1 94% Prepaid SIM market share: Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency: 25% Smartphone penetration (of all mobile phones):
  21. 21. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Meditel (33%) INWI (20%) Average transaction size: $1.7 (+6%) 61% 33% 6% Recommended, 81% of users have browser language set to French. Morocco Monthly ARPPU: $5 (YoY change: +11%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 2.5 5 7.5 10
  22. 22. Cote d’Ivoire Market profile GNI per capita:Median age: 20 30% 23 Smartphone penetration (of all mobile phones): Population: $1,00025 Debit card penetration: 6% Mobile phones: 1 West African CFA Franc (CFA) = $0.0017 36% Mobile broadband access (of all mobile phones): 100% Prepaid SIM market share: Credit card penetration: 1% Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  23. 23. Carriers supported by Fortumo: Carrier billing landscape April 2016 - September 2016 Orange (33%) MTN (32%) Average transaction size: $0.7 Cote d’Ivoire Monthly ARPPU: $0.9 Fortumo launched payments in Cote d’Ivoire during February 2016, historical data is not available. Carrier billing in 2016: Middle East & Africa 0 2.5 5 7.5 10
  24. 24. United Arab Emirates Market profile GNI per capita:Median age: 30 83% 9 Smartphone penetration (of all mobile phones): Population: $45,00017 Mobile phones: 1 United Arab Emirates Dirham (AED) = $0.27 70% Mobile broadband access (of all mobile phones): 85% Prepaid SIM market share: Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  25. 25. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Etisalat (53%) DU (47%) Average transaction size: $7.7 (+17%) 77% 16% 7% Not necessary, 85% of users have browser language set to English. United Arab Emirates Monthly ARPPU: $21.4 (YoY change: +14%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 5 10 15 20
  26. 26. Kuwait Market profile GNI per capita:Median age: 29 70% 4 Smartphone penetration (of all mobile phones): Population: $49,0008 Mobile phones: 1 Kuwaiti Dinar (KWD) = $3.3 82% Mobile broadband access (of all mobile phones): 74% Prepaid SIM market share: Carrier billing in 2016: Middle East & Africa (exchange rate as of October 5th, 2016) million years Gross National Income (IMF 2014 estimate) million Currency:
  27. 27. Traffic sources Carriers supported by Fortumo: Localization: Carrier billing landscape April 2016 - September 2016 Zain (41%) Ooredoo (37%) VIVA (21%) Average transaction size: $5.6 (+115%) 69% 23% 8% Recommended, 38% of users have browser language set to Arabic. Kuwait Monthly ARPPU: $17.6 (YoY change: +14%) Carrier billing in 2016: Middle East & Africa TABLET DESKTOP MOBILE 0 5 10 15 20
  28. 28. Due to religious and political factors, not all services that are available elsewhere can be launched by merchants in the Middle Eastern and African region. Generally, carriers do not allow services related to gambling, politics, social (dating and chatting) and religious content. There is also very strict regulation towards dating and chatting services which require carrier review and approval. Additional country-specific regulations to keep in mind: Carrier billing in 2016: Middle East & Africa Service compliance in the Middle East & Africa Competition services - forbidden in South Africa VPN services - forbidden in Saudi Arabia, United Arab Emirates and Kuwait Tarot and horoscope services - forbidden in Saudi Arabia and Kuwait
  29. 29. Additional reading Carrier 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? Read now Read now Read now
  30. 30. https://fortumo.com https://facebook.com/fortumo https://twitter.com/fortumo https://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 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.

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