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Carrier billing in Asia: 2017 market report by Fortumo

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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.

There are now 1.7 billion smartphones in the Asia Pacific region, compared to 500 million in Western Europe and the United States combined. However, most digital merchants have little knowledge about these markets which means their main focus is still on the saturated (few users entering the market) and expensive (from a user acquisition perspective) Western countries. But with companies like Google, Spotify and Netflix putting increasing focus on these regions, other merchants who want to stay competitive need to do so as well.

This market report aims to give merchants a better understanding of the Asian markets: what the local mobile landscape looks like, how to localize pricing to match user income, which payment methods to select in order to increase the amount of paying users and which devices to target. While revenue per user from these countries is lower compared to Western counterparts, most merchants have their focus elsewhere resulting in lower user acquisition costs. To showcase this, we have for the first time also included Google Play CPI (cost-per-install) costs from each country, comparing them to the US.

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 Web SDK.

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

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Carrier billing in Asia: 2017 market report by Fortumo

  1. 1. Market report by Fortumo Indonesia Pakistan Bangladesh Philippines Vietnam Thailand Myanmar South Korea Malaysia Taiwan Cambodia Hong Kong Singapore CARRIER BILLING IN 2017: ASIA
  2. 2. Carrier billing in 2017: Asia 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 Singapore1 . There are now 1.7 billion smartphones in the Asia Pacific region, compared to 500 million in Western Europe and the United States combined. However, most digital merchants have little knowledge about these markets which means their main focus is still on the saturated (few users entering the market) and expensive (from a user acquisition perspective) Western countries. But with companies like Google, Spotify and Netflix putting increasing focus on these regions, other merchants who want to stay competitive need to do so as well. This market report aims to give merchants a better understanding of the Asian markets: what the local mobile landscape looks like, how to localize pricing to match user income, which payment methods to select in order to increase the amount of paying users and which devices to target. While revenue per user from these countries is lower compared to Western counterparts, most merchants have their focus elsewhere resulting in lower user acquisition costs. To showcase this, we have for the first time also included Google Play CPI (cost-per-install) costs from each country, comparing them to the US. 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 Web SDK. Introduction 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. Andrea Boetti VP of Global Business Development & Sales Fortumo 1 India will be profiled in a separate market report which will be published in September 2017.
  3. 3. Carrier billing in 2017: Asia Market profile Indonesia GNI per capita:Median age: 29259 Population: $4,00081 Mobile phones: 1 Indonesian Rupiah (IDR) = $0.000075 million years Gross National Income (IMF 2014 estimate) million Currency: 47% Smartphone penetration (of all mobile phones): Credit card penetration: 2%37% Mobile broadband access: 98% Prepaid SIM market share: Debit card penetration: 26% $0.38 (6.5x lower) Google Play CPI cost compared to US:
  4. 4. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Indonesia 45% 22% 14% 14% 5% CARRIER MARKET SHARES Market share of carrier billing in digital gaming (SuperdataResearch): 18.6% (3rd most popular payment method) Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 78% of users have browser language set to Indonesian 88% TABLET DESKTOP MOBILE 8% 4% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $1.4 % denotes YoY change 13.4% 0% 0.08 1.21 1.37 4.03 7.93 8.09 20% 40% 37.7% 35% 2.8% 2.2% 78% 10%
  5. 5. Carrier billing in 2017: Asia Market profile Pakistan GNI per capita:Median age: 23191 Population: $1,000128 Mobile phones: 1 Pakistani Rupee (PKR) = $0.0095 million years Gross National Income (IMF 2014 estimate) million Currency: 31% Smartphone penetration (of all mobile phones): Credit card penetration: 0.1%19% Mobile broadband access: 96% Prepaid SIM market share: Debit card penetration: 3% $0.33 (7.5x lower) Google Play CPI cost compared to US:
  6. 6. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Pakistan 25% 19% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 97% of users have browser language set to English 93% TABLET DESKTOP MOBILE 5% 2% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $1.2 % denotes YoY change 14.3% 18% 0% 0.09 0.280.19 0.93 4.63 9.25 9.3 20% 40% 34.3% 38.7% 9.8% 11.1% 97% 60%
  7. 7. Carrier billing in 2017: Asia Market profile Bangladesh GNI per capita:Median age: 24162 Population: $1,000133 Mobile phones: 1 Bangladeshi Taka (BDT) = $0.012 million years Gross National Income (IMF 2014 estimate) million Currency: 28% Smartphone penetration (of all mobile phones): Credit card penetration: 0.3%13% Mobile broadband access: 97% Prepaid SIM market share: Debit card penetration: 5% $0.34 (7.2x lower) Google Play CPI cost compared to US:
  8. 8. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Bangladesh 25% 22% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 95% of users have browser language set to English 92% TABLET DESKTOP MOBILE 5% 3% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $0.7 % denotes YoY change 21.3% 0% 0.02 0.48 0.52 0.54 20% 40% 33.9% 24.3% 32.3% 22.9% 95% 67%
  9. 9. Carrier billing in 2017: Asia Market profile Philippines GNI per capita:Median age: 24102 Population: $4,000122 Mobile phones: 1 Philippine Peso (PHP) = $0.019 million years Gross National Income (IMF 2014 estimate) million Currency: 61% Smartphone penetration (of all mobile phones): Credit card penetration: 3%45% Mobile broadband access: 95% Prepaid SIM market share: Debit card penetration: 21% $0.58 (4.2x lower) Google Play CPI cost compared to US:
  10. 10. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Philippines 42% 38% CARRIER MARKET SHARES Market share of carrier billing in digital gaming (SuperdataResearch): 24.6% (most popular payment method) Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 96% of users have browser language set to English 69% TABLET DESKTOP MOBILE 25% 6% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $4 % denotes YoY change 10.7% 0% 0.05 1.18 1.95 9.77 9.86 19.71 59.14 20% 10% 30% 21.5% 8.5% 14% 10.6% 96% 10% 9.9% 9.1% 5.5% 5.5% 0.390.29 3.91 5.86
  11. 11. Carrier billing in 2017: Asia Market profile Vietnam GNI per capita:Median age: 2994 Population: $5,00020 Mobile phones: 1 Vietnamese Dong (VND) = $0.000044 million years Gross National Income (IMF 2014 estimate) million Currency: 72% Smartphone penetration (of all mobile phones): Credit card penetration: 2%26% Mobile broadband access: 89% Prepaid SIM market share: Debit card penetration: 27% $0.51 (4.8x lower) Google Play CPI cost compared to US:
  12. 12. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Vietnam 34% 27% 26% 8% 2% CARRIER MARKET SHARES Market share of carrier billing in digital gaming (SuperdataResearch): 15.6% (3td most popular payment method) Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 86% of users have browser language set to Vietnamese 63% TABLET DESKTOP MOBILE 34% 3% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $0.7 % denotes YoY change 93.9% 0% 0.13 0.22 0.43 0.65 60% 30% 90% 4% 96.5% 2.7% 86% unchanged
  13. 13. Carrier billing in 2017: Asia Market profile Thailand GNI per capita:Median age: 3668 Population: $14,00085 Mobile phones: 1 Thai Baht (THB) = $0.030 million years Gross National Income (IMF 2014 estimate) million Currency: 70% Smartphone penetration (of all mobile phones): Credit card penetration: 6%97% Mobile broadband access: 83% Prepaid SIM market share: Debit card penetration: 55% $0.56 (4.4x lower) Google Play CPI cost compared to US:
  14. 14. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Thailand 45% 29% 24% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 82% of users have browser language set to Thai 71% TABLET DESKTOP MOBILE 23% 6% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $3.8 % denotes YoY change 5.2% 0% 0.29 0.6 1.44 8.37 15.26 26.03 5% 10% 2.5% 8% 2.7% 5.5% 2.8% 82% 9% 5.9% 2.7% 2.49 4.37 4.45
  15. 15. Carrier billing in 2017: Asia Market profile Myanmar Median age: 2854 Population: 38 Mobile phones: 1 Myanmar Kyat (MMK) = $0.00073 million yearsmillion Currency: 80% Smartphone penetration (of all mobile phones): Credit card penetration: 0%43% Mobile broadband access: 99% Prepaid SIM market share: Debit card penetration: 2% $0.6 (4.1x lower) Google Play CPI cost compared to US:
  16. 16. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Myanmar 37% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 76% of users have browser language set to English 79% TABLET DESKTOP MOBILE 15% 6% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $1.4 % denotes YoY change 8.2% 0% 0.19 0.38 0.56 0.75 0.76 7.57 40% 20% 30% 10% 50% 55.6% 57.7% 2.1% 5.3% 76% 39% 0.57
  17. 17. Carrier billing in 2017: Asia Market profile South Korea GNI per capita:Median age: 4150 Population: $27,00057 Mobile phones: 1 South Korean Won (KRW) = $0.00088 million years Gross National Income (IMF 2014 estimate) million Currency: 91% Smartphone penetration (of all mobile phones): Credit card penetration: 56%99% Mobile broadband access: 5% Prepaid SIM market share: Debit card penetration: 67% $0.85 (2.9x lower) Google Play CPI cost compared to US:
  18. 18. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) South Korea 50% 32% 18% CARRIER MARKET SHARES Market share of carrier billing in digital gaming (SuperdataResearch): 18.6% (3td most popular payment method) Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 54% of users have browser language set to Korean 83% TABLET DESKTOP MOBILE 16% 1% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $4.3 % denotes YoY change 20.5% 0% 2.44 2.63 4.38 8.75 17.51 17.56 20% 10% 30% 16% 17.4% 3.9% 4.5% 54% 46%
  19. 19. Carrier billing in 2017: Asia Market profile Malaysia GNI per capita:Median age: 2831 Population: $11,00043 Mobile phones: 1 Malaysian Ringgit (MYR) = $0.23 million years Gross National Income (IMF 2014 estimate) million Currency: 81% Smartphone penetration (of all mobile phones): Credit card penetration: 20%69% Mobile broadband access: 77% Prepaid SIM market share: Debit card penetration: 41% $0.48 (5.1x lower) Google Play CPI cost compared to US:
  20. 20. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Malaysia 30% 29% 27% 10% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 84% of users have browser language set to English 87% TABLET DESKTOP MOBILE 10% 3% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $0.7 % denotes YoY change 14.1% 0% 0.11 0.66 0.69 11.4 22.14 22.88 20% 40% 30.4% 4.4% 4.9% 6.6% 84% 52% 8.9% 2.21 6.64
  21. 21. Carrier billing in 2017: Asia Market profile Taiwan Median age: 3923 Population: 32 Mobile phones: 1 New Taiwan Dollar (TWD) = $0.033 million yearsmillion Currency: 82% Smartphone penetration (of all mobile phones): Credit card penetration: 55%92% Mobile broadband access: 18% Prepaid SIM market share: Debit card penetration: 71% $1.57 (1.6x lower) Google Play CPI cost compared to US:
  22. 22. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Taiwan 37% 25% 24% 8% 6% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 95% of users have browser language set to Chinese 55% TABLET DESKTOP MOBILE 34% 11% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $6.3 % denotes YoY change 5.7% 0% 0.9 0.96 2.8 2.91 32.03 32.39 5% 10% 8.3% 7.1% 7.1% 2% 95% 58% 7.8% 6.41 6.45
  23. 23. Carrier billing in 2017: Asia Market profile Cambodia GNI per capita:Median age: 2416 Population: $3,00026 Mobile phones: 1 Cambodian Riel (KHR) = $0.00024 million years Gross National Income (IMF 2014 estimate) million Currency: 48% Smartphone penetration (of all mobile phones): Credit card penetration: 3%37% Mobile broadband access: 94% Prepaid SIM market share: Debit card penetration: 5% $0.58 (4.2x lower) Google Play CPI cost compared to US:
  24. 24. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Cambodia 48% 15% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 82% of users have browser language set to English 85% TABLET DESKTOP MOBILE 8% 7% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $1.4 % denotes YoY change 17.3% 0% 0.99 1.39 1.99 3.99 4.99 5.99 30% 60% 63.3% 36.7% 20.2% 20.6% 82% 63% 2.99 10.2%
  25. 25. Carrier billing in 2017: Asia Market profile Hong Kong GNI per capita:Median age: 437 Population: $54,00013 Mobile phones: 1 Hong Kong Dollar (HKD) = $0.13 million years Gross National Income (IMF 2014 estimate) million Currency: 79% Smartphone penetration (of all mobile phones): Credit card penetration: 64%73% Mobile broadband access: 44% Prepaid SIM market share: Debit card penetration: 70% $1.35 (1.8x lower) Google Play CPI cost compared to US:
  26. 26. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Hong Kong 30% 25% 13% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 47% of users have browser language set to Chinese 91% TABLET DESKTOP MOBILE 6% 3% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $3.9 % denotes YoY change 13.5% 0% 1.25 1.26 1.88 3.77 3.78 3.79 20% 40% 28.3% 32.1% 13.3% 21.1% 47% 2% 1.91.89 3.76 22.8%
  27. 27. Carrier billing in 2017: Asia Market profile Singapore GNI per capita:Median age: 346 Population: $77,0008 Mobile phones: 1 Singapore Dollar (SGD) = $0.73 million years Gross National Income (IMF 2014 estimate) million Currency: 91% Smartphone penetration (of all mobile phones): Credit card penetration: 35%98% Mobile broadband access: 41% Prepaid SIM market share: Debit card penetration: 89% $1.38 (1.8x lower) Google Play CPI cost compared to US:
  28. 28. Carrier billing in 2017: Asia CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape Pricing dynamics (January - July 2017) Singapore 45% 28% CARRIER MARKET SHARES Price point Popularity % Price point Revenue % LOCALIZATION Not necessary, 76% of users have browser language set to English 89% TABLET DESKTOP MOBILE 7% 4% TRAFFIC SOURCES Price point (in USD) Monthly median revenue per user, 2017 YTD: $7.5 % denotes YoY change 6.1% 0% 0.67 2.17 2.24 7.46 13.9 14.45 10% 20% 7.3% 10.9% 11.3% 3.4% 76% 15% 6.9% 7.7% 2.29 7.25
  29. 29. Additional reading Infographic: direct carrier billing 101 Read now White paper: Carrier bundling for user acquisition and marketing Read now Carrier billing in Western Europe: market report by Fortumo Read now Carrier billing in 2017: Asia
  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, direc- tors, 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 © 2017 Fortumo | All rights reserved.

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