carrier billing in asia: 2016 market report by fortumo

Carrier billingin 2016:

AsiaMarket report by Fortumo

IndonesiaPakistanBangladeshPhilippinesVietnamThailandMyanmarSouth KoreaMalaysiaTaiwanCambodiaHong KongSingapore

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 1.

The growth of the mobile audience in Western markets is slowing down. But in Asia, the mobile audience is growing at an increasing rate. This can be attributed to availability of cheap Android smartphones (the global average price of Android smartphones is 3 times lower than iPhones) which are also affordable by people with a lower income.

Entering the rapidly growing markets in Asia is a significant opportunity for digital content merchants, but also involves additional work in terms of localization. The key aspects that should be considered by merchants expanding are: language (few people speak English), pricing (lower income), access to payment methods (lack of credit cards), social networks (local networks are often more popular than Facebook and Twitter), devices (cheaper phones means less technological capability) and lack of access to mobile data (need to make apps available offline).

As can be seen from the report, in a majority of the countries the average revenue per paying user (ARPPU) and average transaction size with carrier billing has declined over the year. At the same time, there has been a massive growth in the amount of end-users making payments. These two trends strongly correlate with each other. Early adopters with a higher income are the first to adopt carrier billing, while the people adopting carrier billing later generally have a lower income and are able to pay less.

1 India will be profiled in a separate market report wich will be published in September 2016.

Carrier billing in 2016: Asia

https://fortumo.com/coverage/

https://www.gsmaintelligence.com/research/2015/01/from-feature-phones-to-smartphones-the-road-ahead/456/

http://www.slideshare.net/kleinerperkins/2016-internet-trends-report/6-KPCB_INTERNET_TRENDS_2016_PAGE

https://theoverspill.wordpress.com/2016/02/24/q4-2015-apple-android-pricing-rattrap-smartphone-profit/

https://theoverspill.wordpress.com/2016/02/24/q4-2015-apple-android-pricing-rattrap-smartphone-profit/

Fortumo’s Asian 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.

Sanjay SinhaVice President of Business Development, AsiaFortumo

Mattias LiivakHead of Marketing & PRFortumo

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


http://fortumo.com/products


IndonesiaMarket profile

Gross National Income (GNI)per capita (IMF 2014 estimate):

Median age:

29 years

40%

259 million

Smartphonepenetration (of all mobile phones):

Population:

$4,000

340 million

Debit cardpenetration:

26%

Mobile phones in market:

Currency: 1 Indonesian Rupiah (IDR) = $0.000076(exchange rate as of August 22nd, 2016)

79 millionEstimated social media users:

37%

Mobile broadbandaccess (of all

mobile phones):

98%

Prepaid SIMmarket share:

Credit cardpenetration:

2%

Market share of carrier billing in digital gaming (SuperdataResearch): 19%

Carriers supported by Fortumo:

Payment types:

Localization:

Carrier billing landscapeJanuary 2016 - July 2016

Change in number of people using carrier billing: +153%

one-off transactionssubscriptions (weekly and monthly billing)

Telkomsel (45%) Indosat (22%) Hutchison 3 (14%) XL (14%)

Average transaction size: $1.2 (-8%)

Traffic sources:

78% mobile

17% desktop

5% tablet Recommended, 71% of users have browser language set to Indonesian.

(3rd most popular payment method)


Indonesia

Monthly ARPPU: $2.9 (YoY change: -26%)

Smartfren (4%)

Important note: Trivia related services, skill games with a prize, VPN services and non-gaming services (Hutchison) are forbidden in Indonesia.


PakistanMarket profile


Median age:

23 years

31%

191 million


Population:

$1,000

128 million


3%


Currency: 1 Pakistani Rupee (PKR) = $0.0095(exchange rate as of August 22nd, 2016)

19%


mobile phones):

96%



0.1%


Payment types:

Localization:




Telenor (25%) Zong (19%)

Average transaction size: $1.7 (+254)

Traffic sources:

96% mobile

1% desktop

3% tablet Not necessary, majority of users have browser language set to English.


Pakistan

Monthly ARPPU: $5.1 (YoY change: +121)


BangladeshMarket profile


Median age:

24 years

20%

162 million


Population:

$1,000

133 million


5%


Currency: 1 Bangladeshi Taka (BDT) = $0.013(exchange rate as of August 22nd, 2016)


13%


mobile phones):

97%



0.3%


Payment types:

Localization:

Carrier billing landscapeJanuary 2016 - July 2016*


Banglalink (25%) Robi (22%)

Average transaction size: $0.4

Traffic sources:

87% mobile

10% desktop



Bangladesh

Monthly ARPPU: $1.3

* - Fortumo launched carrier billing in Bangladesh in April 2016, historical data for comparison is not available.


PhilippinesMarket profile


Median age:

24 years

40%

102 million


Population:

$4,000

122 million


21%


Currency: 1 Philippine Peso (PHP) = $0.021(exchange rate as of August 22nd, 2016)


45%


mobile phones):

95%



3%


Payment types:

Localization:




Smart (49%) Globe (31%)

Average transaction size: $4 (-16%)

Traffic sources:

77% mobile

14% desktop



Philippines

Monthly ARPPU: $13 (YoY change: -12%)


VietnamMarket profile


Median age:

29 years

42%

94 million


Population:

$5,000

120 million


27%


Currency: 1 Vietnamese Dong (VND) = $0.000045(exchange rate as of August 22nd, 2016)


26%


mobile phones):

89%



2%



Payment types:

Localization:




Viettel (34%) MobiFone (27%) VinaPhone (26%) Vietnamobile (8%)

Average transaction size: $0.6 (0%)

Traffic sources:

72% mobile

25% desktop

3% tablet Recommended, 87% of users have browser language set to Vietnamese.



Vietnam


Gmobile (2%)


ThailandMarket profile


Median age:

36 years

43%

68 million


Population:

$14,000

85 million


55%


Currency: 1 Thai Baht (THB) = $0.029(exchange rate as of August 22nd, 2016)


97%


mobile phones):

83%



6%



Payment types:

Localization:


Change in number of people using carrier billing: -14%


AIS (45%) DTAC (29%) True Move H (24%)


Traffic sources:

76% mobile

17% desktop

7% tablet Recommended, 82% of users have browser language set to Thai.



Thailand



MyanmarMarket profile

Median age:

28 years54 millionPopulation:

38 million


2%


Currency: 1 Myanmar Kyat (MMK) = $0.00083(exchange rate as of August 22nd, 2016)

43%


mobile phones):

99%



0%


Payment types:

Localization:

Carrier billing landscapeFebruary 2016 - July 2016*


MPT (50%)


Traffic sources:

93% mobile

1% desktop



Myanmar

Monthly ARPPU: $1.3

* - Fortumo launched carrier billing in Myanmar in February 2016, historical data for comparison is not available.Important note: Services related to politics are forbidden.


South KoreaMarket profile


Median age:

41 years

84%

50 million


Population:

$27,000

57 million


67%


Currency: 1 South Korean Won (KRW) = $0.00089(exchange rate as of August 22nd, 2016)

99%


mobile phones):

5%



56%



Payment types:

Localization:


Change in number of people using carrier billing: -15%


SKT (50%) KT (32%) LG U+ (18%)

Average transaction size: $4 (-6%)

Traffic sources:

74% mobile

25% desktop

1% tablet Recommended, 63% of users have browser language set to Korean.

(2nd most popular payment method)


South Korea

Monthly ARPPU: $5.6 (YoY change: +8%)

Important note: Korea is one of the most strictly regulated markets for carrier billing compliance. Please contact us for additional information about South Korea.


MalaysiaMarket profile


Median age:

28 years

49%

31 million


Population:

$22,000

43 million


21%


Currency: 1 Malaysian Ringgit (MYR) = $0.25(exchange rate as of August 22nd, 2016)


69%


mobile phones):

77%



20%


Payment types:

Localization:




Maxis (35%) DiGi (25%) Umobile (8%)

Average transaction size: $2.6 (+35%)

Traffic sources:

53% mobile

31% desktop



Malaysia


Important note: Services related to employment and religion are forbidden.


TaiwanMarket profile

Median age:

39 years

87%

23 million


Population:

32 million


71%


Currency: 1 New Taiwan Dollar (TWD) = $0.031(exchange rate as of August 22nd, 2016)

92%


mobile phones):

18%



55%


Payment types:

Localization:




CHT (37%) Taiwan Mobile (25%) FET (24%) APT (8%) T Star (6%)


Traffic sources:

50% mobile

41% desktop

9% tablet Recommended, 96% of users have browser language set to Chinese.


Taiwan

Monthly ARPPU: $11.7 (YoY change: +21%)


CambodiaMarket profile


Median age:

24 years

26%

16 million


Population:

$3,000

26 million


5%


Currency: 1 Cambodian Riel (KHR) = $0.00024(exchange rate as of August 22nd, 2016)

37%


mobile phones):

94%



3%


Payment types:

Localization:

Carrier billing landscapeJanuary 2016 - July 2016*


Smart (48%) Cellcard (15%)


Traffic sources:

86% mobile

4% desktop



Cambodia

Monthly ARPPU: $8.3

* - Fortumo launched carrier billing in Cambodia in October 2015, historical data for comparison is not available.


Hong KongMarket profile


Median age:

43 years

84%

7 million


Population:

$54,000

13 million


70%


Currency: 1 Hong Kong Dollar (HKD) = $0.13(exchange rate as of August 22nd, 2016)


73%


mobile phones):

44%



64%


Payment types:

Localization:




Peoples (30%) 3 (25%) Smartone-Vodafon (13%)


Traffic sources:

92% mobile

2% desktop

6% tablet Recommended, 52% of users have browser language set to Chinese.


Hong Kong



SingaporeMarket profile


Median age:

34 years

86%

6 million


Population:

$77,000

8 million


89%


Currency: 1 Singapore Dollar (SGD) = $0.74(exchange rate as of August 22nd, 2016)


98%


mobile phones):

41%



35%



Payment types:

Localization:




SingTel (45%) M1 (28%)


Traffic sources:

87% mobile

7% desktop




Singapore


Additional reading

Why does localization matter more than ever before?Read now

Carrier billing in Western Europe: 2016 market report by FortumoRead now

White paper: risk and fraud management with carrier billingRead now

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

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

https://blog.fortumo.com/white-paper-risk-and-fraud-management-with-carrier-billing/

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 asia: 2016 market report by fortumo

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