carrier billing in 2016 - middle east & africa

Carrier billing in 2016: Middle East & AfricaMarket report by Fortumo

This market report gives an overview of the mobile payments landscape of the Middle East and Africa.

It covers 12 markets where Fortumo has coverage. These markets are: Nigeria, Egypt, Turkey, South Africa, Kenya, Ethiopia, Saudi Arabia, Iraq, Morocco, Cote d’Ivoire, United Arab Emirates and Kuwait.

This region is very diverse and economic well-being, access to online payments and user spending can di�er ten-fold even in neighboring countries. This market report aims to help digital services merchants understand these di�erences and �ne-tune their content and monetization strategy to maximize revenue from each market.

Carrier billing in 2016: Middle East & Africa

Introduction

https://fortumo.com/coverage/

Fortumo’s Middle Eastern & African market report gives a high-level overview of the biggest markets in the region as well as insights on user spending behavior, localization and platform preferences. 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 cross-platform mobile payments product.

Mattias LiivakHead of Marketing & PRFortumo

Should you have any questions about the report, please get in touch with us at [email protected].


Andrea BoettiVP of Global Business Development & SalesFortumo

https://fortumo.com/products/web-payments/

NigeriaMarket profile

GNI per capita:Median age:

18

30%

185

Smartphonepenetration (of all

mobile phones):

Population:

$3,000151

Debit cardpenetration:

36%

Mobile phones:

1 Nigerian Naira (NGN) = $0.0032

24%

Mobile broadbandaccess (of all

mobile phones):

97%

Prepaid SIMmarket share:

Credit cardpenetration:

3%


(exchange rate as of October 5th, 2016)

million years Gross National Income (IMF 2014 estimate)

million

Currency:

Carriers supported by Fortumo:

Localization:

Carrier billing landscape April 2016 - September 2016

MTN (45%) Airtel (18%) Etisalat (9%)

Average transaction size: $0.3 (-40%)

72%

21%

7%

Not necessary, 98% of users have browser language set to English.

Nigeria

Monthly ARPPU: $0.9 (YoY change: -23%)


TABLET

DESKTOP

MOBILE

Trafficsources

0 2.5 5 7.5 10

EgyptMarket profile


25

22%

92


mobile phones):

Population:

$3,00094


10%

Mobile phones:

1 Egyptian Pound (EGP) = $0.11

42%


mobile phones):

89%



2%




million

Currency:

Trafficsources


Localization:


Vodafone (40%) Mobinil (36%) Etisalat (24%)

Average transaction size: $0.5 (-12%)

51%

43%

6%

Recommended, 42% of users have browser language set to Arabic.

Egypt

Monthly ARPPU: $2.2 (YoY change: +17%)


TABLET

DESKTOP

MOBILE

0 2.5 5 7.5 10

TurkeyMarket profile


30

50%

79


mobile phones):

Population:

$11,00071


43%

Mobile phones:

1 Turkish Lira (TRY) = $0.33

39%


mobile phones):

54%



33%




million

Currency:

Trafficsources


Localization:


Turkcell (52%) Vodafone (28%) Türk Telekom (20%)

Average transaction size: $5.4 (+140%)

56%

31%

13%

Recommended, 92% of users have browser language set to Turkish.

Turkey



TABLET

DESKTOP

MOBILE

Market share of carrier billing in digital gaming (SuperdataResearch): 8% (4th most popular payment method)

0 2.5 5 7.5 10

South AfricaMarket profile


26

37%

55


mobile phones):

Population:

$7,00087


55%

Mobile phones:

1 South African Rand (ZAR) = $0.073

41%


mobile phones):

85%



14%




million

Currency:

Trafficsources


Localization:


Vodacom (56%) MTN (34%) Cell C (8%)

Average transaction size: $2 (-17%)

79%

15%

6%


South Africa



TABLET

DESKTOP

MOBILE

Telkom (2%)

Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method)

0 2.5 5 7.5 10

KenyaMarket profile


19

15%

47


mobile phones):

Population:

$1,00036


35%

Mobile phones:

1 Kenyan Shilling (KES) = $0.0099

19%


mobile phones):

97%



5%




million

Currency:

Trafficsources


Localization:


Safaricom (66%) Airtel (26%) Orange (8%)


83%

14%

3%


Kenya



TABLET

DESKTOP

MOBILE

0 2.5 5 7.5 10

EthiopiaMarket profile


18

10%

101


mobile phones):

Population:

$55042


0.8%

Mobile phones:

1 Ethiopian Birr (ETB) = $0.045

58%


mobile phones):

98%



0.4%




million

Currency:

Trafficsources


Localization:


Ethio Telecom (100%)

Average transaction size: $0.2

57%

43%Not necessary, 96% of users have browser language set to English.

Ethiopia

Monthly ARPPU: $0.3

Fortumo launched in Ethiopia during May 2016, historical data is not available.


DESKTOP

MOBILE

0 2.5 5 7.5 10

Saudi ArabiaMarket profile


26

57%

32


mobile phones):

Population:

$25,00057


64%

Mobile phones:

1 Saudi Riyal (SAR) = $0.27

71%


mobile phones):

86%



12%




million

Currency:

Trafficsources


Localization:


STC (48%) Mobily (37%) Zain (15%)


67%

20%

13%


Saudi Arabia



TABLET

DESKTOP

MOBILE

0 5 10 15 20

Market share of carrier billing in digital gaming (SuperdataResearch): 14% (4th most popular payment method)

IraqMarket profile


22

17%

37


mobile phones):

Population:

$7,00031


4%

Mobile phones:

1 Iraqi Dinar (IQD) = $0.0086

20%


mobile phones):

97%



2%




million

Currency:

Trafficsources


Localization:


Zain (43%) AsiaCell (35%) Korek (22%)


79%

14%

7%


Iraq



TABLET

DESKTOP

MOBILE

0 2.5 5 7.5 10

MoroccoMarket profile


28

32%

35


mobile phones):

Population:

$3,00043Mobile phones:

1 Moroccan Dirham (MAD) = $0.1

94%





million

Currency:

25%


mobile phones):

Trafficsources


Localization:


Meditel (33%) INWI (20%)


61%

33%

6%

Recommended, 81% of users have browser language set to French.

Morocco

Monthly ARPPU: $5 (YoY change: +11%)


TABLET

DESKTOP

MOBILE

0 2.5 5 7.5 10

Cote d’IvoireMarket profile


20

30%

23


mobile phones):

Population:

$1,00025


6%

Mobile phones:

1 West African CFA Franc (CFA) = $0.0017

36%


mobile phones):

100%



1%




million

Currency:



Orange (33%) MTN (32%)

Average transaction size: $0.7

Cote d’Ivoire

Monthly ARPPU: $0.9

Fortumo launched payments in Cote d’Ivoire during February 2016, historical data is not available.


0 2.5 5 7.5 10

United Arab EmiratesMarket profile


30

83%

9


mobile phones):

Population:


1 United Arab Emirates Dirham (AED) = $0.27

70%


mobile phones):

85%





million

Currency:

Trafficsources


Localization:


Etisalat (53%) DU (47%)


77%

16%

7%


United Arab Emirates



TABLET

DESKTOP

MOBILE

0 5 10 15 20

KuwaitMarket profile


29

70%

4


mobile phones):

Population:


1 Kuwaiti Dinar (KWD) = $3.3

82%


mobile phones):

74%





million

Currency:

Trafficsources


Localization:


Zain (41%) Ooredoo (37%) VIVA (21%)


69%

23%

8%


Kuwait



TABLET

DESKTOP

MOBILE

0 5 10 15 20

Due to religious and political factors, not all services that are available elsewhere can be launched by merchants in the Middle Eastern and African region. Generally, carriers do not allow services related to gambling, politics, social (dating and chatting) and religious content. There is also very strict regulation towards dating and chatting services which require carrier review and approval.

Additional country-speci�c regulations to keep in mind:


Service compliance in the Middle East & Africa

Competition services - forbidden in South Africa

VPN services - forbidden in Saudi Arabia, United Arab Emirates and Kuwait

Tarot and horoscope services - forbidden in Saudi Arabia and Kuwait

Additional reading

Carrier billing in India: 2016 market report by Fortumo

Carrier billing in Asia: 2016 market report by Fortumo

Why does localization matter more than ever before?

Read now

Read now

Read now

https://blog.fortumo.com/why-does-localization-matter-more-than-ever-before/

https://blog.fortumo.com/carrier-billing-in-asia-2016-market-report-by-fortumo/

https://blog.fortumo.com/carrier-billing-in-india-2016-market-report-by-fortumo/

https://fortumo.comhttps://facebook.com/fortumohttps://twitter.com/fortumohttps://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.

carrier billing in 2016 - middle east & africa

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