Fortumo: "Third Party In-app Payments"

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Fortumo: "Third Party In-app Payments"

  1. 1. Third Party In-App Payments! Tarvo Topolev, Fortumo
  2. 2. 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
  3. 3. 3Fortumo!
  4. 4. 4The Smartphone Market Is Growing! How do you monetize in these highest growing countries?
  5. 5. 5Market Leaders Are Android And iOS!
  6. 6. 6Will The New Ones Succeed?!
  7. 7. 7App Store Revenue: iOS vs Google!
  8. 8. 8Google Play Growing, Fast!
  9. 9. 9
  10. 10. 10 Streams Of Revenue!Mobile Payments Advertising Offerwalls
  11. 11. 11Premium Or Freemium?!
  12. 12. 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
  13. 13. Monetizing Freemium on Android!13
  14. 14. 14Top 3 Ways To Increase Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
  15. 15. 15 Going Global!Around 65% of smartphones are sold in emerging markets,almost 50% of smartphones in Asia-Pacific.
  16. 16. 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€
  17. 17. 17Top 3 Ways To Increase Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
  18. 18. 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
  19. 19. 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. 20. 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
  21. 21. 21Payment flow! vs
  22. 22. 22Offline payments!Unique to carrier billing27% of all mobile apps usages sessionstake place while there is no dataconnection presentDoes your payment provider supportoffline?
  23. 23. 23 Top 3 Ways To Increase Android Revenues Globally!Focus on emerging marketsUse alternative ways of paymentUse alternative distribution channels
  24. 24. App Stores!
  25. 25. 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. 26. 26 App Monetization!Start going global from emerging regions + Mobile Operator Billing + Many Distribution Channels =
  27. 27. 27Questions?!
  28. 28. 28 We’re Hiring!!Senior Software Developer QA Engineer Front-End Developer Mobile Developer Integrations Managerhttp://fortumo.com/careers
  29. 29. 29 Get In Touch! Tarvo Topolevtarvo.topolev@fortumo.com http://fortumo.com

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