Fortumo: "Third Party In-app Payments"Presentation Transcript
Third Party In-App Payments! Tarvo Topolev, Fortumo
2 Fortumo!Founded in 2007Mobile operator billing in 75 countriesOfﬁces in Europe (Estonia), US (San Francisco) and Asia (Beijing)Team of 45 people in 5 countriesSelf-servicing platform, long tailPlatforms: Web, Mobile Web, HTML 5, Android, Windows 8, Windows Phone
4The Smartphone Market Is Growing! How do you monetize in these highest growing countries?
5Market Leaders Are Android And iOS!
6Will The New Ones Succeed?!
7App Store Revenue: iOS vs Google!
8Google Play Growing, Fast!
10 Streams Of Revenue!Mobile Payments Advertising Offerwalls
11Premium Or Freemium?!
12 Premium Or Freemium?!App stores are full of low quality apps More downloads Cultural differences Target long tail (just like offers)Weak and non effective billing solutions People are used with free apps Free competitors Ability to adjust to different ability to pay Limited distribution options Better global reach Piracy More distribution options Lower dependence from app stores Piracy
Monetizing Freemium on Android!13
14Top 3 Ways To Increase Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
15 Going Global!Around 65% of smartphones are sold in emerging markets,almost 50% of smartphones in Asia-Paciﬁc.
16 Pricing Of In-App Payments!Average size of in-app payment, aggregated data from 1 millionAndroid payments with Fortumo in January 2013:Sweden 4.25€Spain 3.9€Germany 3.5€United Kingdom 2.5€Russia 2.4€Brazil 1.5€Mexico 1.4€
17Top 3 Ways To Increase Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
18 Why Use 3rd Party Payment Options?Emerging markets don’t monetize well with credit cardsLocal solutions are not integratedSome platforms already suggest using 3rd partypayment solution – as they don’t have their own solutionConversion ratesMore distribution optionsFocusing into some markets
What are the alternatives?!App store billing (Google Wallet etc.) – mostly restricted to credit card usersCarrier billing (direct billing, premium SMS) – good coverage and conversion rates, sometimes high carrier commissionsCredit cards (Visa, Mastercard) – high payout but difﬁcult checkout, kills conversion ratePayPal – works in limited number of the countriesPrepaid cards, kiosks and vouchers – works well in selected Asian countries, but low conversion
20 Why mobile operator billing?!4.7 billion mobile phone users worldwide – Only 1.3 billion credit card usersLess clicks, less hassle – Leads to up to 10x better conversion than credit cardsBest for selling virtual goods for <10USD – In some countries, over 90% of such purchases made by mobile 4
21Payment ﬂow! vs
22Ofﬂine payments!Unique to carrier billing27% of all mobile apps usages sessionstake place while there is no dataconnection presentDoes your payment provider supportofﬂine?
23 Top 3 Ways To Increase Android Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
App stores!3rs party appstores: – T-Store (Korea) – Airtel AppCenter – Opera Mobile App – 360 (China) – Telkomsel AppZone Store – HiAPK (China) – GetJar – Andronavi (Japan) OEM stores: – Appia (Pocketgear) – Yandex store (Rus.) – Samsung Apps – AndAppStore – Fasmicro App Store – ZTE Appstore – Handango (Africa) – LG smartWorld – OnlyAndroid – Shop4Apps – Insyde Market (Motorola) – Amazon App Store – SlideME – Appoke and many more.. – YAAM Mobile operator stores: – OrangeWorldRegional stores: – O2 Active
26 App Monetization!Start going global from emerging regions + Mobile Operator Billing + Many Distribution Channels =