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Carrier billing in Western Europe - 2017 market report by Fortumo

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Want to find out more about carrier billing and user spending behaviour in Germany, France, United Kingdom, Italy, Spain, Netherlands, Belgium, Greece, Portugal, Austria, Switzerland and Ireland? You've come to the right place.

Even though Western Europe is a region with high income and good access to bank-based payment services, many people still prefer to use alternative payment methods such as carrier billing. This is illustrated by the fact that carrier billing is among the top 3 payment methods for digital gaming in most Western European countries.

To help you tap into revenue from these countries, our market report provides you with the following data:

1) Deployments of carrier billing in Europe by Facebook, Apple, Google, Spotify, Netflix & Riot Games
2) An overview of demographics, digital infrastructure and payments access
3) User spending behaviour, including revenue per user and price points by popularity and revenue
4) Traffic sources of paying users by platform, as well as localization requirements

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 Western Europe - 2017 market report by Fortumo

  1. 1. Market report by Fortumo
  2. 2. This market report gives an overview of the mobile payments landscape of Western Europe. It covers 12 markets where Fortumo has coverage. These markets are Germany, France, United Kingdom, Italy, Spain, Netherlands, Belgium, Greece, Portugal, Austria, Switzerland and Ireland. Even though Western Europe is a region with high income and good access to bank-based payment services, many people still prefer to use alternative payment methods such as carrier billing. This is illustrated by the fact that carrier billing is among the top 3 payment methods for digital gaming in most of the countries profiled. Carrier billing is popular in Western Europe primarily due to two reasons. As carrier billing does not require users to sign up for any accounts, payments can be completed with one step. This creates an improved checkout experience over bank-based payment solutions, especially on mobile devices. Furthermore, high awareness of card-not-present fraud has increased the usage of carrier billing as a safe, alternative payment method. This is because with carrier billing, no personal or sensitive data is transmitted during the checkout process. It’s important to note that Western Europe is a primarily postpaid market, e.g. users have a contract with their mobile operator and pay for items purchased through carrier billing at the end of each month. This creates a higher risk of friendly fraud (chargebacks) compared to emerging markets where most users have a prepaid SIM card. To find out how to mitigate friendly fraud, please read our white paper on preventing consumer-originating fraud with carrier billing. From this report, you will find a high-level overview of the digital ecosystem in each country. Additionally, we provide data on carrier billing in the country: money spent per user on digital services as well as pricing dynamics of the market which help you fine-tune your monetization strategy. Payments data is based on merchants using Fortumo’s Web SDK. Introduction 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 2017: Western Europe
  3. 3. Direct carrier billing is widely used by the leading digital merchants in social networking, app store, streaming and gaming segments. Below you can see where the companies have implemented direct carrier billing, indicating the quality of carrier billing in the country in terms of payouts, taxation and technical features provided by carriers. Direct carrier billing deployment in Western Europe Germany France United Kingdom Italy Spain Netherlands Belgium Greece Portugal Austria Switzerland Ireland Carrier billing in 2017: Western Europe
  4. 4. Market profile Germany GNI per capita:Median age: 4681 Population: $48,00081 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 68% Smartphone penetration (of all mobile phones): Credit card penetration: 45%71% Mobile broadband access: 46% Prepaid SIM market share: Debit card penetration: 92% 5% 1% (same) Carrier billing in 2017: Western Europe
  5. 5. CARRIERS SUPPORTED BY FORTUMO Carrier billing landscape March 2017 - May 2017 Germany 34% 25% 24% 15% 2% CARRIER MARKET SHARES Market share of carrier billing in digital gaming (SuperdataResearch): 16.4% (4th most popular payment method) Price point Popularity % Price point Revenue % LOCALIZATION Recommended, 52% of users have browser language set to German. 67% TABLET DESKTOP MOBILE 24% 9% TRAFFIC SOURCES Price point (in USD) Quarterly median revenue per user: $16.2 3% % denotes YoY change 7.8% 0% 0.52 3.15 5.25 8.44 10.56 16.19 33.71 5% 10% 4.6% 1.8% 3% 3.5% 52% Carrier billing in 2017: Western Europe
  6. 6. Market profile France GNI per capita:Median age: 4065 Population: $43,00065 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 64% Smartphone penetration (of all mobile phones): Credit card penetration: 44%74% Mobile broadband access: 12% Prepaid SIM market share: Debit card penetration: 81% 3% 8%(same) Carrier billing in 2017: Western Europe
  7. 7. Carrier billing landscape France Market share of carrier billing in digital gaming (SuperdataResearch): 21% (2nd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $22.4 48% % denotes YoY change 17.1% 0% 0.37 2.13 2.25 3.19 3.36 10.66 11.23 15% 20% 10% 5% 25% 8% 13.6% 30.4% 15.2% 23.8% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 40% 31% 17% 10% 1% CARRIER MARKET SHARES LOCALIZATION Recommended, 94% of users have browser language set to French. 55% TABLET DESKTOP MOBILE 32% 13% TRAFFIC SOURCES 94% 1% Carrier billing in 2017: Western Europe
  8. 8. Market profile United Kingdom GNI per capita:Median age: 4065 Population: $43,00065 Mobile users: 1 British Pound (GBP) = $1.3 million years Gross National Income (IMF 2014 estimate) million Currency: 74% Smartphone penetration (of all mobile phones): Credit card penetration: 61%79% Mobile broadband access: 38% Prepaid SIM market share: Debit card penetration: 96% 4% 1% (same) Carrier billing in 2017: Western Europe
  9. 9. Carrier billing landscape United Kingdom Market share of carrier billing in digital gaming (SuperdataResearch): 3.7% (4th most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: % denotes YoY change 15.6% 0% 0.61 1.82 1.85 3.7 4.14 8.47 8.64 12.29 37.85 5% 10% 15% 7.4% 8.4% 7% 3.6% $18.5 47% 5% 3.4% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 34% 30% 25% 10% 1% CARRIER MARKET SHARES 57% TABLET DESKTOP MOBILE 37% 6% TRAFFIC SOURCES Carrier billing in 2017: Western Europe
  10. 10. Market profile Italy GNI per capita:Median age: 4460 Population: $34,00060 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 70% Smartphone penetration (of all mobile phones): Credit card penetration: 36%70% Mobile broadband access: 82% Prepaid SIM market share: Debit card penetration: 64% 13% (same)(same) Carrier billing in 2017: Western Europe
  11. 11. Carrier billing landscape Italy Market share of carrier billing in digital gaming (SuperdataResearch): 17.9% (3rd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $30.4 % denotes YoY change 24.9% 0% 1.05 2.1 2.16 10.67 12.24 12.96 16.86 10% 15% 20% 5% 25% 9.5% 19.3% 16.7% 6.3% 81% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 35% 28% 25% 12% CARRIER MARKET SHARES LOCALIZATION Recommended, 81% of users have browser language set to Italian. 84% TABLET DESKTOP MOBILE 8% 8% TRAFFIC SOURCES 81% Carrier billing in 2017: Western Europe
  12. 12. Market profile Spain GNI per capita:Median age: 4146 Population: $29,00046 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 81% Smartphone penetration (of all mobile phones): Credit card penetration: 54%74% Mobile broadband access: 24% Prepaid SIM market share: Debit card penetration: 82% 1% (same)(same) Carrier billing in 2017: Western Europe
  13. 13. Carrier billing landscape Spain Market share of carrier billing in digital gaming (SuperdataResearch): 17.1% (3rd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $11.8 3% % denotes YoY change 7.8% 0% 0.52 3.15 8.44 16.19 33.71 10% 5% 15% 4.6% 3% 3.5% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 40% 32% 22% 6% CARRIER MARKET SHARES LOCALIZATION Recommended, 89% of users have browser language set to Spanish. 86% TABLET DESKTOP MOBILE 5% 9% TRAFFIC SOURCES 89% Carrier billing in 2017: Western Europe
  14. 14. Market profile Netherlands GNI per capita:Median age: 4217 Population: $52,00017 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 80% Smartphone penetration (of all mobile phones): Credit card penetration: 33%75% Mobile broadband access: 34% Prepaid SIM market share: Debit card penetration: 98% 5% 1% (same) Carrier billing in 2017: Western Europe
  15. 15. Carrier billing landscape Netherlands Market share of carrier billing in digital gaming (SuperdataResearch): 15.1% (3rd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $10.4 % denotes YoY change 18.3% 0% 0.84 2.4 2.25 3.37 5.26 5.62 5% 10% 15% 17.1% 2.2% 2.6% 3% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 40% 24% 23% 5% 3% 4% CARRIER MARKET SHARES LOCALIZATION Recommended, 66% of users have browser language set to Dutch. 70% TABLET DESKTOP MOBILE 20% 10% TRAFFIC SOURCES 66% others Carrier billing in 2017: Western Europe
  16. 16. Market profile Belgium GNI per capita:Median age: 4311 Population: $47,00011 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 60% Smartphone penetration (of all mobile phones): Credit card penetration: 43%64% Mobile broadband access: 48% Prepaid SIM market share: Debit card penetration: 93% 9% 4%(same) Carrier billing in 2017: Western Europe
  17. 17. Carrier billing landscape Belgium Market share of carrier billing in digital gaming (SuperdataResearch): 18.5% (2nd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $9.7 3% % denotes YoY change 12.4% 0% 1.06 2.11 2.16 3.37 22.4710.51 28.09 10% 5% 10.7% 7.3% 6.2% 7.6% 8.2% 3.16 4.7% 2.2% 10.66 11.23 March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 38% 30% 27% 5% CARRIER MARKET SHARES LOCALIZATION Recommended, 55% of users have browser language set to French and 17% to Dutch. 71% TABLET DESKTOP MOBILE 22% 7% TRAFFIC SOURCES 55% Carrier billing in 2017: Western Europe
  18. 18. Market profile Greece GNI per capita:Median age: 4311 Population: $23,00011 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 58% Smartphone penetration (of all mobile phones): Credit card penetration: 11%59% Mobile broadband access: 71% Prepaid SIM market share: Debit card penetration: 55% 9% 5% (same) Carrier billing in 2017: Western Europe
  19. 19. Carrier billing landscape Greece Market share of carrier billing in digital gaming (SuperdataResearch): 23.2% (2nd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $10.4 38% % denotes YoY change 19.8% 0% 0.65 1.67 3.841.57 5.37 5.44 5.67 10% 5% 15% 9.5% 10.4% 9.4% 8.1% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 50% 29% 21% CARRIER MARKET SHARES LOCALIZATION Recommended, 84% of users have browser language set to Greek. 62% TABLET DESKTOP MOBILE 27% 11% TRAFFIC SOURCES 84% Carrier billing in 2017: Western Europe
  20. 20. Market profile Portugal GNI per capita:Median age: 4110 Population: $21,00010 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 59% Smartphone penetration (of all mobile phones): Credit card penetration: 28%82% Mobile broadband access: 58% Prepaid SIM market share: Debit card penetration: 66% 4% 2%(same) Carrier billing in 2017: Western Europe
  21. 21. Carrier billing landscape Portugal Market share of carrier billing in digital gaming (SuperdataResearch): 31.2% (leading payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $13.2 % denotes YoY change 4.1% 0% 0.77 1.07 2.21 3.19 3.36 4.5 10% 5% 10% 9.8% 8.6% 88% 7.1% 6% 2.36 March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 42% 39% 19% CARRIER MARKET SHARES LOCALIZATION Recommended, 94% of users have browser language set to Portuguese. 72% TABLET DESKTOP MOBILE 24% 4% TRAFFIC SOURCES 94% Carrier billing in 2017: Western Europe
  22. 22. Market profile Austria GNI per capita:Median age: 449 Population: $50,0009 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 70% Smartphone penetration (of all mobile phones): Credit card penetration: 40%86% Mobile broadband access: 32% Prepaid SIM market share: Debit card penetration: 81% 6% (same)(same) Carrier billing in 2017: Western Europe
  23. 23. Carrier billing landscape Austria Market share of carrier billing in digital gaming (SuperdataResearch): 14.3% (3rd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $16.2 % denotes YoY change 11.5% 0% 3.16 3.37 5.4 10.52 11.24 5% 10% 10.1% 5.1% 7.2% 62% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 42% 34% 23% 1% CARRIER MARKET SHARES LOCALIZATION Recommended, 61% of users have browser language set to German. 73% TABLET DESKTOP MOBILE 19% 8% TRAFFIC SOURCES 61% Carrier billing in 2017: Western Europe
  24. 24. Market profile Switzerland GNI per capita:Median age: 428 Population: $88,0008 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 77% Smartphone penetration (of all mobile phones): Credit card penetration: 54%84% Mobile broadband access: 36% Prepaid SIM market share: Debit card penetration: 84% 7% 1% (same) Carrier billing in 2017: Western Europe
  25. 25. Carrier billing landscape Switzerland Market share of carrier billing in digital gaming (SuperdataResearch): 14.4% (3rd most popular payment method) Price point Popularity % Price point (in USD) Quarterly median revenue per user: $14.8 18% % denotes YoY change 13.8% 0% 0.48 2.88 3.04 14.42 14.86 10% 5% 12.5% 6.7% 6.8% 4.7% 50.6148.67 2.9% 29.2 March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 54% 27% 19% CARRIER MARKET SHARES LOCALIZATION Recommended, 41% of users have browser language set to German and 14% to French. 65% TABLET DESKTOP MOBILE 28% 7% TRAFFIC SOURCES 41% Carrier billing in 2017: Western Europe
  26. 26. Market profile Ireland GNI per capita:Median age: 355 Population: $47,0005 Mobile users: 1 Euro (EUR) = $1.1 million years Gross National Income (IMF 2014 estimate) million Currency: 78% Smartphone penetration (of all mobile phones): Credit card penetration: 46%73% Mobile broadband access: 52% Prepaid SIM market share: Debit card penetration: 86% 4% 1% (same) Carrier billing in 2017: Western Europe
  27. 27. Carrier billing landscape Ireland Price point Popularity % Price point (in USD) Quarterly median revenue per user: $8.1 3% % denotes YoY change 19.6% 0% 2.1 2.63 2.64 2.7 2.81 10% 5% 15% 20% 17.5% 23.6% 19.3% March 2017 - May 2017 Price point Revenue % CARRIERS SUPPORTED BY FORTUMO 40% 37% 20% 3% CARRIER MARKET SHARES 60% TABLET DESKTOP MOBILE 29% 11% TRAFFIC SOURCES Carrier billing in 2017: Western Europe
  28. 28. Additional reading The digital audience has changed: what this means for you Read now Carrier billing market report: Latin America Read now White paper: 6 steps to preventing consumer fraud with carrier billing Read now Carrier billing in 2017: Western Europe
  29. 29. 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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