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Carrier billing in the Nordics: 2016 market report by Fortumo

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This market report gives an overview of the carrier billing landscape in 4 Nordic countries: Denmark, Finland, Norway and Sweden.

The Nordic region is one of the wealthiest in the world, with all countries belonging to the top 20 countries globally in national income per capita. With a well-developed telecommunications infrastructure, high-speed mobile internet is accessible to almost everyone and has also resulted in very high smartphone ownership rates. This makes the region attractive for any digital merchant as user’s access to digital content and disposable income are high.

While a relatively large amount of people have access to card-based payments thanks to owning a credit card, carrier billing is still among the most popular payment methods for digital content. This is either due to inconvenience in the checkout process where card-based payments require the user to enter substantial amounts of personal data about themselves; or due to the fear of fraud - that the same information shared with merchants might become compromised. Due to this, carrier billing is a suitable alternative payment method to enable purchasing for people who either can not or do not want to make card payments online.

Carrier billing data presented in the report has been taken from Fortumo’s cross-platform mobile payments product, available to users for payments on desktop and the mobile web.

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.

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Carrier billing in the Nordics: 2016 market report by Fortumo

  1. 1. Carrier billing in the Nordics: 2016 market report by Fortumo
  2. 2. The Nordic region is one of the wealthiest in the world, with all countries belonging to the top 20 countries globally in national income per capita. With a well-developed telecommunications infrastructure, high-speed mobile internet is accessible to almost everyone and has also resulted in very high smartphone ownership rates. This makes the region attractive for any digital merchant as user’s access to digital content and disposable income are high. While a relatively large amount of people have access to card-based payments thanks to owning a credit card, carrier billing is still among the most popular payment methods for digital content. This is either due to inconvenience in the checkout process where card-based payments require the user to enter substantial amounts of personal data about themselves; or due to the fear of fraud - that the same information shared with merchants might become compromised. Due to this, carrier billing is a suitable alternative payment method to enable purchasing for people who either can not or do not want to make card payments online. This market report gives an overview of the carrier billing landscape in 4 Nordic countries: Denmark, Finland, Norway and Sweden. Introduction Carrier billing in the Nordics: 2016 market report by Fortumo
  3. 3. Carrier billing data presented in the report has been taken from Fortumo’s cross-platform mobile payments product, available to users for payments on desktop and the mobile web. Mattias Liivak Head of Marketing & PR Fortumo If you have any questions about the data in this report, please reach out to us at bd@fortumo.com. Andrea Boetti VP of Global Business Development & Sales Fortumo Carrier billing in the Nordics: 2016 market report by Fortumo
  4. 4. Sweden Market profile GNI per capita:Median age: 41 85% 10 Smartphone penetration (of all mobile phones): Population: $62,00015 Debit card penetration: 98% Mobile phones: 1 Swedish Krona (SEK) = $0.11 91% Mobile broadband access: 23% Prepaid SIM market share: Credit card penetration: 45% (exchange rate as of November 2nd, 2016) million years Gross National Income (IMF 2014 estimate) million Currency: Carrier billing in the Nordics: 2016 market report by Fortumo
  5. 5. Carriers supported by Fortumo: 45% 26% 17% 11% 1% CARRIER MARKET SHARES 82% TABLET DESKTOP MOBILE 14% 4% TRAFFIC SOURCES LOCALIZATION: Recommended, 72% of users have browser language set to Swedish. Carrier billing landscape May 2016 - October 2016 Sweden Carrier billing in the Nordics: 2016 market report by Fortumo Average transaction size: $4.6 (+37%) Monthly ARPPU: $11 (YoY change: +75%) 0 2 4 6 8 10 12 Market share of carrier billing in digital gaming (SuperdataResearch): 11.2% (3rd most popular payment method) Important note: Consumers in Sweden need to set up an account with WyWallet before they are able to make carrier billing transactions.
  6. 6. Subscriptions May 2016 - October 2016 Sweden Carrier billing in the Nordics: 2016 market report by Fortumo Subscriptions availability: Weekly and monthly subscriptions with flexible pricing. (positive % denotes growth in subscribers): SUBSCRIPTION DURATION POPULARITY SUBSCRIPTION DURATION REVENUE SUBSCRIPTIONS CHURN WEEKLY MONTHLY +6.2%+1.6% WEEKLY: 71% MONTHLY: 29% WEEKLY: 64% MONTHLY: 36%
  7. 7. Denmark Market profile GNI per capita:Median age: 42 80% 6 Smartphone penetration (of all mobile phones): Population: $61,0009 Debit card penetration: 96% Mobile phones: 1 Danish Krone (DKK) = $0.15 84% Mobile broadband access: 14% Prepaid SIM market share: Credit card penetration: 37% (exchange rate as of November 2nd, 2016) million years Gross National Income (IMF 2014 estimate) million Currency: Carrier billing in the Nordics: 2016 market report by Fortumo
  8. 8. Average transaction size: $5.3 (+37%) Monthly ARPPU: $9.3 (YoY change: +45%) 0 2 4 6 8 10 12 Carriers supported by Fortumo: 45% 30% 19% 6% CARRIER MARKET SHARES 57% TABLET DESKTOP MOBILE 36% 7% TRAFFIC SOURCES LOCALIZATION: Recommended, 76% of users have browser language set to Danish. Carrier billing landscape May 2016 - October 2016 Denmark Carrier billing in the Nordics: 2016 market report by Fortumo Market share of carrier billing in digital gaming (SuperdataResearch): 18.3% (3rd most popular payment method) Important note: Danish consumers have a right to request a refund 15 days after making a purchase using carrier billing.
  9. 9. Subscriptions May 2016 - October 2016 Denmark Carrier billing in the Nordics: 2016 market report by Fortumo Subscriptions availability: Daily, weekly and monthly subscriptions with flexible pricing (up to 200 DKK) (positive % denotes growth in subscribers): SUBSCRIPTIONS CHURN WEEKLY +2.9%
  10. 10. Finland Market profile GNI per capita:Median age: 42 56% 6 Smartphone penetration (of all mobile phones): Population: $48,00010 Debit card penetration: 97% Mobile phones: 1 Euro (EUR) = $1.11 78% Mobile broadband access: 8% Prepaid SIM market share: Credit card penetration: 63% (exchange rate as of November 2nd, 2016) million years Gross National Income (IMF 2014 estimate) million Currency: Carrier billing in the Nordics: 2016 market report by Fortumo
  11. 11. Average transaction size: $3.8 (+6%) Monthly ARPPU: $7.5 (YoY change: +27%) 0 2 4 6 8 10 12 Carriers supported by Fortumo: 42% 37% 21% CARRIER MARKET SHARES 57% TABLET DESKTOP MOBILE 31% 12% TRAFFIC SOURCES LOCALIZATION: Recommended, 75% of users have browser language set to Finnish. Carrier billing landscape May 2016 - October 2016 Finland Carrier billing in the Nordics: 2016 market report by Fortumo Market share of carrier billing in digital gaming (SuperdataResearch): 16.4% (4th most popular payment method)
  12. 12. Norway Market profile GNI per capita:Median age: 39 83% 5 Smartphone penetration (of all mobile phones): Population: $104,0006 Debit card penetration: 99% Mobile phones: 1 Norwegian Krone (NOK) = $0.12 74% Mobile broadband access: 15% Prepaid SIM market share: Credit card penetration: 67% (exchange rate as of November 2nd, 2016) million years Gross National Income (IMF 2014 estimate) million Currency: Carrier billing in the Nordics: 2016 market report by Fortumo
  13. 13. Average transaction size: $4.2 (+13%) Monthly ARPPU: $8.2 (YoY change: +48%) 0 2 4 6 8 10 12 Carriers supported by Fortumo: 51% 37% 9% 2% 1% CARRIER MARKET SHARES 53% TABLET DESKTOP MOBILE 39% 8% TRAFFIC SOURCES LOCALIZATION: Recommended, 54% of users have browser language set to Norwegian. Carrier billing landscape May 2016 - October 2016 Norway Carrier billing in the Nordics: 2016 market report by Fortumo Market share of carrier billing in digital gaming (SuperdataResearch): 19.9% (3rd most popular payment method) Important note: Carrier billing in Norway is processed through the mobile operator owned payments solution Strex.
  14. 14. Additional reading Infographic: carrier billing deployment tracker Infographic: how do credit cards stack up against carrier billing? Carrier billing in Middle East & Africa: 2016 market report by Fortumo Read now Read now Read now
  15. 15. 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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