Carrier billing in Asia: 2016 market report by Fortumo

1,149 views

Published on

This market report gives an overview of the mobile payments landscape of Asia. It covers markets where Fortumo has coverage. These markets are Indonesia, Pakistan, Bangladesh, Philippines, Vietnam, Thailand, Myanmar, South Korea, Malaysia, Taiwan, Cambodia, Hong Kong and Singapore.

The growth of the mobile audience in Western markets is slowing down. But in Asia, the mobile audience is growing at an increasing rate. This can be attributed to availability of cheap Android smartphones (the global average price of Android smartphones is 3 times lower than iPhones) which are also affordable by people with a lower income.

Entering the rapidly growing markets in Asia is a significant opportunity for digital content merchants, but also involves additional work in terms of localization. The key aspects that should be considered by merchants expanding are: language (few people speak English), pricing (lower income), access to payment methods (lack of credit cards), social networks (local networks are often more popular than Facebook and Twitter), devices (cheaper phones means less technological capability) and lack of access to mobile data (need to make apps available offline).

As can be seen from the report, in a majority of the countries the average revenue per paying user (ARPPU) and average transaction size with carrier billing has declined over the year. At the same time, there has been a massive growth in the amount of end-users making payments. These two trends strongly correlate with each other. Early adopters with a higher income are the first to adopt carrier billing, while the people adopting carrier billing later generally have a lower income and are able to pay less.

Fortumo’s Asian 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.

Should you have any questions about the report, please get in touch with us at bd@fortumo.com.

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.

Published in: Technology

Carrier billing in Asia: 2016 market report by Fortumo

  1. 1. Carrier billing in 2016: AsiaMarket report by Fortumo Indonesia Pakistan Bangladesh Philippines Vietnam Thailand Myanmar South Korea Malaysia Taiwan Cambodia Hong Kong Singapore
  2. 2. This market report gives an overview of the mobile payments landscape of Asia. It covers markets where Fortumo has coverage. These markets are Indonesia, Pakistan, Bangladesh, Philippines, Vietnam, Thailand, Myanmar, South Korea, Malaysia, Taiwan, Cambodia, Hong Kong and Singapore 1 . The growth of the mobile audience in Western markets is slowing down. But in Asia, the mobile audience is growing at an increasing rate. This can be attributed to availability of cheap Android smartphones (the global average price of Android smartphones is 3 times lower than iPhones) which are also affordable by people with a lower income. Entering the rapidly growing markets in Asia is a significant opportunity for digital content merchants, but also involves additional work in terms of localization. The key aspects that should be considered by merchants expanding are: language (few people speak English), pricing (lower income), access to payment methods (lack of credit cards), social networks (local networks are often more popular than Facebook and Twitter), devices (cheaper phones means less technological capability) and lack of access to mobile data (need to make apps available offline). As can be seen from the report, in a majority of the countries the average revenue per paying user (ARPPU) and average transaction size with carrier billing has declined over the year. At the same time, there has been a massive growth in the amount of end-users making payments. These two trends strongly correlate with each other. Early adopters with a higher income are the first to adopt carrier billing, while the people adopting carrier billing later generally have a lower income and are able to pay less. 1 India will be profiled in a separate market report wich will be published in September 2016. Carrier billing in 2016: Asia
  3. 3. Fortumo’s Asian 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. Sanjay Sinha Vice President of Business Development, Asia Fortumo 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: Asia
  4. 4. Carrier billing in 2016: Asia Indonesia Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 29 years 40% 259 million Smartphone penetration (of all mobile phones): Population: $4,000 340 million Debit card penetration: 26% Mobile phones in market: Currency: 1 Indonesian Rupiah (IDR) = $0.000076 (exchange rate as of August 22nd, 2016) 79 million Estimated social media users: 37% Mobile broadband access (of all mobile phones): 98% Prepaid SIM market share: Credit card penetration: 2%
  5. 5. Market share of carrier billing in digital gaming (SuperdataResearch): 19% Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +153% one-off transactions subscriptions (weekly and monthly billing) Telkomsel (45%) Indosat (22%) Hutchison 3 (14%) XL (14%) Average transaction size: $1.2 (-8%) Traffic sources: 78% mobile 17% desktop 5% tablet Recommended, 71% of users have browser language set to Indonesian. (3rd most popular payment method) Carrier billing in 2016: Asia Indonesia Monthly ARPPU: $2.9 (YoY change: -26%) Smartfren (4%) Important note: Trivia related services, skill games with a prize, VPN services and non-gaming services (Hutchison) are forbidden in Indonesia.
  6. 6. Carrier billing in 2016: Asia Pakistan Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 23 years 31% 191 million Smartphone penetration (of all mobile phones): Population: $1,000 128 million Debit card penetration: 3% Mobile phones in market: Currency: 1 Pakistani Rupee (PKR) = $0.0095 (exchange rate as of August 22nd, 2016) 19% Mobile broadband access (of all mobile phones): 96% Prepaid SIM market share: Credit card penetration: 0.1%
  7. 7. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +96% one-off transactions subscriptions (weekly and monthly billing) Telenor (25%) Zong (19%) Average transaction size: $1.7 (+254) Traffic sources: 96% mobile 1% desktop 3% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Pakistan Monthly ARPPU: $5.1 (YoY change: +121)
  8. 8. Carrier billing in 2016: Asia Bangladesh Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 24 years 20% 162 million Smartphone penetration (of all mobile phones): Population: $1,000 133 million Debit card penetration: 5% Mobile phones in market: Currency: 1 Bangladeshi Taka (BDT) = $0.013 (exchange rate as of August 22nd, 2016) 79 million Estimated social media users: 13% Mobile broadband access (of all mobile phones): 97% Prepaid SIM market share: Credit card penetration: 0.3%
  9. 9. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016* one-off transactions subscriptions (weekly and monthly billing) Banglalink (25%) Robi (22%) Average transaction size: $0.4 Traffic sources: 87% mobile 10% desktop 3% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Bangladesh Monthly ARPPU: $1.3 * - Fortumo launched carrier billing in Bangladesh in April 2016, historical data for comparison is not available.
  10. 10. Carrier billing in 2016: Asia Philippines Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 24 years 40% 102 million Smartphone penetration (of all mobile phones): Population: $4,000 122 million Debit card penetration: 21% Mobile phones in market: Currency: 1 Philippine Peso (PHP) = $0.021 (exchange rate as of August 22nd, 2016) 48 million Estimated social media users: 45% Mobile broadband access (of all mobile phones): 95% Prepaid SIM market share: Credit card penetration: 3%
  11. 11. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +219% one-off transactions subscriptions (weekly and monthly billing) Smart (49%) Globe (31%) Average transaction size: $4 (-16%) Traffic sources: 77% mobile 14% desktop 9% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Philippines Monthly ARPPU: $13 (YoY change: -12%)
  12. 12. Carrier billing in 2016: Asia Vietnam Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 29 years 42% 94 million Smartphone penetration (of all mobile phones): Population: $5,000 120 million Debit card penetration: 27% Mobile phones in market: Currency: 1 Vietnamese Dong (VND) = $0.000045 (exchange rate as of August 22nd, 2016) 36 million Estimated social media users: 26% Mobile broadband access (of all mobile phones): 89% Prepaid SIM market share: Credit card penetration: 2%
  13. 13. Market share of carrier billing in digital gaming (SuperdataResearch): 16% Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +95% one-off transactions subscriptions (weekly and monthly billing) Viettel (34%) MobiFone (27%) VinaPhone (26%) Vietnamobile (8%) Average transaction size: $0.6 (0%) Traffic sources: 72% mobile 25% desktop 3% tablet Recommended, 87% of users have browser language set to Vietnamese. (3rd most popular payment method) Carrier billing in 2016: Asia Vietnam Monthly ARPPU: $1.1 (YoY change: -26%) Gmobile (2%)
  14. 14. Carrier billing in 2016: Asia Thailand Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 36 years 43% 68 million Smartphone penetration (of all mobile phones): Population: $14,000 85 million Debit card penetration: 55% Mobile phones in market: Currency: 1 Thai Baht (THB) = $0.029 (exchange rate as of August 22nd, 2016) 38 million Estimated social media users: 97% Mobile broadband access (of all mobile phones): 83% Prepaid SIM market share: Credit card penetration: 6%
  15. 15. Market share of carrier billing in digital gaming (SuperdataResearch): 19% Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: -14% one-off transactions subscriptions (weekly and monthly billing) AIS (45%) DTAC (29%) True Move H (24%) Average transaction size: $3.3 (-4%) Traffic sources: 76% mobile 17% desktop 7% tablet Recommended, 82% of users have browser language set to Thai. (3rd most popular payment method) Carrier billing in 2016: Asia Thailand Monthly ARPPU: $8.6 (YoY change: -31%)
  16. 16. Carrier billing in 2016: Asia Myanmar Market profile Median age: 28 years54 million Population: 38 million Debit card penetration: 2% Mobile phones in market: Currency: 1 Myanmar Kyat (MMK) = $0.00083 (exchange rate as of August 22nd, 2016) 43% Mobile broadband access (of all mobile phones): 99% Prepaid SIM market share: Credit card penetration: 0%
  17. 17. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape February 2016 - July 2016* one-off transactions subscriptions (weekly and monthly billing) MPT (50%) Average transaction size: $0.8 Traffic sources: 93% mobile 1% desktop 6% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Myanmar Monthly ARPPU: $1.3 * - Fortumo launched carrier billing in Myanmar in February 2016, historical data for comparison is not available. Important note: Services related to politics are forbidden.
  18. 18. Carrier billing in 2016: Asia South Korea Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 41 years 84% 50 million Smartphone penetration (of all mobile phones): Population: $27,000 57 million Debit card penetration: 67% Mobile phones in market: Currency: 1 South Korean Won (KRW) = $0.00089 (exchange rate as of August 22nd, 2016) 99% Mobile broadband access (of all mobile phones): 5% Prepaid SIM market share: Credit card penetration: 56%
  19. 19. Market share of carrier billing in digital gaming (SuperdataResearch): 20% Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: -15% one-off transactions subscriptions (weekly and monthly billing) SKT (50%) KT (32%) LG U+ (18%) Average transaction size: $4 (-6%) Traffic sources: 74% mobile 25% desktop 1% tablet Recommended, 63% of users have browser language set to Korean. (2nd most popular payment method) Carrier billing in 2016: Asia South Korea Monthly ARPPU: $5.6 (YoY change: +8%) Important note: Korea is one of the most strictly regulated markets for carrier billing compliance. Please contact us for additional information about South Korea.
  20. 20. Carrier billing in 2016: Asia Malaysia Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 28 years 49% 31 million Smartphone penetration (of all mobile phones): Population: $22,000 43 million Debit card penetration: 21% Mobile phones in market: Currency: 1 Malaysian Ringgit (MYR) = $0.25 (exchange rate as of August 22nd, 2016) 18 million Estimated social media users: 69% Mobile broadband access (of all mobile phones): 77% Prepaid SIM market share: Credit card penetration: 20%
  21. 21. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +59% one-off transactions subscriptions (weekly and monthly billing) Maxis (35%) DiGi (25%) Umobile (8%) Average transaction size: $2.6 (+35%) Traffic sources: 53% mobile 31% desktop 16% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Malaysia Monthly ARPPU: $4.8 (YoY change: -7%) Important note: Services related to employment and religion are forbidden.
  22. 22. Carrier billing in 2016: Asia Taiwan Market profile Median age: 39 years 87% 23 million Smartphone penetration (of all mobile phones): Population: 32 million Debit card penetration: 71% Mobile phones in market: Currency: 1 New Taiwan Dollar (TWD) = $0.031 (exchange rate as of August 22nd, 2016) 92% Mobile broadband access (of all mobile phones): 18% Prepaid SIM market share: Credit card penetration: 55%
  23. 23. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +28% one-off transactions subscriptions (weekly and monthly billing) CHT (37%) Taiwan Mobile (25%) FET (24%) APT (8%) T Star (6%) Average transaction size: $2.7 (+15%) Traffic sources: 50% mobile 41% desktop 9% tablet Recommended, 96% of users have browser language set to Chinese. Carrier billing in 2016: Asia Taiwan Monthly ARPPU: $11.7 (YoY change: +21%)
  24. 24. Carrier billing in 2016: Asia Cambodia Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 24 years 26% 16 million Smartphone penetration (of all mobile phones): Population: $3,000 26 million Debit card penetration: 5% Mobile phones in market: Currency: 1 Cambodian Riel (KHR) = $0.00024 (exchange rate as of August 22nd, 2016) 37% Mobile broadband access (of all mobile phones): 94% Prepaid SIM market share: Credit card penetration: 3%
  25. 25. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016* one-off transactions subscriptions (weekly and monthly billing) Smart (48%) Cellcard (15%) Average transaction size: $2.2 Traffic sources: 86% mobile 4% desktop 10% tablet Not necessary, majority of users have browser language set to English. Carrier billing in 2016: Asia Cambodia Monthly ARPPU: $8.3 * - Fortumo launched carrier billing in Cambodia in October 2015, historical data for comparison is not available.
  26. 26. Carrier billing in 2016: Asia Hong Kong Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 43 years 84% 7 million Smartphone penetration (of all mobile phones): Population: $54,000 13 million Debit card penetration: 70% Mobile phones in market: Currency: 1 Hong Kong Dollar (HKD) = $0.13 (exchange rate as of August 22nd, 2016) 79 million Estimated social media users: 73% Mobile broadband access (of all mobile phones): 44% Prepaid SIM market share: Credit card penetration: 64%
  27. 27. Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +11% one-off transactions subscriptions (weekly and monthly billing) Peoples (30%) 3 (25%) Smartone-Vodafon (13%) Average transaction size: $2.6 (-2%) Traffic sources: 92% mobile 2% desktop 6% tablet Recommended, 52% of users have browser language set to Chinese. Carrier billing in 2016: Asia Hong Kong Monthly ARPPU: $12.2 (YoY change: -8%)
  28. 28. Carrier billing in 2016: Asia Singapore Market profile Gross National Income (GNI) per capita (IMF 2014 estimate): Median age: 34 years 86% 6 million Smartphone penetration (of all mobile phones): Population: $77,000 8 million Debit card penetration: 89% Mobile phones in market: Currency: 1 Singapore Dollar (SGD) = $0.74 (exchange rate as of August 22nd, 2016) 4 million Estimated social media users: 98% Mobile broadband access (of all mobile phones): 41% Prepaid SIM market share: Credit card penetration: 35%
  29. 29. Market share of carrier billing in digital gaming (SuperdataResearch): 16% Carriers supported by Fortumo: Payment types: Localization: Carrier billing landscape January 2016 - July 2016 Change in number of people using carrier billing: +76% one-off transactions subscriptions (weekly and monthly billing) SingTel (45%) M1 (28%) Average transaction size: $6.7 (+11%) Traffic sources: 87% mobile 7% desktop 6% tablet Not necessary, majority of users have browser language set to English. (3rd most popular payment method) Carrier billing in 2016: Asia Singapore Monthly ARPPU: $13.8 (YoY change: -43%)
  30. 30. Additional reading Why does localization matter more than ever before? Read now Carrier billing in Western Europe: 2016 market report by Fortumo Read now White paper: risk and fraud management with carrier billing Read now
  31. 31. 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.

×