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DIRECT CARRIER BILLING: 2019 GLOBAL OVERVIEW BY FORTUMO
INTRODUCTIONDirect carrier billing: 2019 global overview by Fortumofortumo.com
This report gives an overview of the direct carrier billing landscape during 2019. This report is based on data from Fortumo’s payments platform and 78 countries, with a reach of more than 3 billion consumers.
The following regions are represented in the report: Asia (17 countries), Western Europe (17 countries), Middle East & North Africa (15 countries), Central & Eastern Europe (22 countries) and Latin America (7 countries).
For these regions, we have brought out payments data collected from our Web SDK, Hosted DCB and Payments API payment products:
The data is aggregated across thousands of digital service providers using Fortumo’s platform to collect payments.
This gives a merchant-agnostic view to consumer behavior: how much people are willing to spend through carrier billing, what pricing other service providers are using and how does the distribution of transactions look like. As a result, this report should be a useful guide in assessing how to adjust user acquisition and pricing strategies for each region.
Total payment volumes per region
Average and median revenue per user
Average and median transaction values
Digital service pricing distribution
Beside this report, Fortumo publishes a lot of industry-specific research on carrier billing and its implementation across different industries. Our segment-specific research done during 2019 can be found here:
Streaming
Case study: Vidio
White paper: TV provider bundling for streaming services
Case study: OLX
White paper: classifieds revenue growth through carrier billing
Case study: Telekom Slovenia & Google Play
Case study: Aftonbladet
White paper: media monetization & growth strategies
Case study: Easypark
White paper: transportation accessibility & telco partnerships
White paper: Telefónica unlocking the prepaid subscriber base potential
Classifieds
App stores
Publishing
Transportation
Telcos
Mattias LiivakHead of Marketing & PRFortumo
Any questions on the report or the dataincluded? Reach out at [email protected].
Andrea BoettiVP of Global Business DevelopmentFortumo
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Global payment volume comparison:
FORECAST
2017 2018 2019 2020 2021 2022 2023
Dividing the world into regions is arbitrary. There are countries in Asia with higher income than some countries in Europe, smartphone ownership in some Latin American countries is higher than in some regions of the US etc.
It’s of course immediately noticeable that MENA provided fantastic growth for Fortumo’s customers last year. At the same time, Latin America declined due to challenging conditions in the region. Both the rapid growth of MENA and slow decline of Latin America are impacted by the same three key aspects that influence how well carrier billing is doing in each region and country:
The regions lagging behind are those where legacy Premium SMS solutions continue to be the main solution of carrier billing.
Commercial offering of telcos. Strongly related to the last point, telcos in regions with a modern direct carrier billing platform are willing to give out better payouts to service providers. This has resulted in carrier billing becoming competitive with credit cards and has opened up business in new segments.
Technical and operational capabilities of telcos. Regions with the biggest growth in carrier billing are those where telcos have launched modern carrier billing infrastructure (server-to-server integrations, two-step and dynamic charging, automated refunds etc), automated processes (seamless service provider on-boarding, automated refunding) and supporting merchants in increasing consumer awareness of carrier billing (joint marketing campaigns with digital service providers).
Taxation and legislation. Taxation of digital content as it relates to carrier billing and the requirement for local licenses or entities remain a challenge in some regions, hampering the deployment of new telco and service provider partnerships.
To get country-level data on carrier billing, check out our market reports of different regions: APAC, CEE, LatAm, MENA and Western Europe. On a regional level, here’s how carrier billing performed in 2019:
CARRIER BILLING: BIRD’S-EYE VIEW
MIDDLE EAST & AFRICA
ASIA
WESTERN EUROPE
CENTRAL & EASTERN EUROPE
LATIN AMERICA
While looking at regional trends is a good place to start, digital service providers should research every country they are interested doing business in on a case-by-case basis. For this, there are a number of free tools available across the web. Here are a few to start with: Dollar Street, GSMA Mobile Connectivity Index and the World Bank Financial Inclusion Database.
-6%LATIN AMERICA
3485%MIDDLE EAST & AFRICA
LAUNCH HIGHLIGHTS:
37%ASIA
LAUNCH HIGHLIGHTS:
42%CENTRAL & EASTERN EUROPE
LAUNCH HIGHLIGHTS:
37%WESTERN EUROPE
LAUNCH HIGHLIGHTS:
ASIA
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Total payment volume:
Spend distribution:
FORECAST
2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023
FORECAST
Revenue per user:
4 YEAR AVERAGE CHANGE
-10%2019 CHANGE
-16%2019 AVERAGE REVENUE PER USER $4.4
4 YEAR AVERAGE CHANGE
-9%2019 CHANGE
-19%2019 MEDIAN REVENUE PER USER $2.1
Transaction values:
Our comment:
4 YEAR AVERAGE CHANGE
-9%2019 CHANGE
-18%2019 AVERAGE TRANSACTION VALUE $1.83
4 YEAR AVERAGE CHANGE
-9%2019 CHANGE
-23%2019 MEDIAN TRANSACTION VALUE $1.55
4 YEAR AVERAGE GROWTH
150%2019 GROWTH
37%PAYMENTVOLUME
PRICE POINT (IN $) 1 2 3 4 5 9 20
PRICE POINT POPULARITY % PRICE POINT REVENUE %
Overview of the actual prices paid by consumers for digital content, indicating which pricing is most frequently used and which pricing brings the most revenue to digital service providers.
The total payment volume in Asia has increased while revenue per user and transaction values have declined. Our hypothesis is that smartphone prices are declining, giving more people in lower income groups access to digital content. They pay for content, but have less disposable income to do so.
The second trend that impacts the decline of revenue per user and transaction values is better localization of service pricing by digital service providers. Users in Asia usually have lower disposable income, so a growing amount of digital service providers are creating packages (such as weekly subscriptions instead of monthly ones) which make the content more affordable to consumers.
The total amount of money paid by consumers for purchases from Fortumo's merchants through our payments platform.
Total payment volume divided by the amount of unique paying consumers. The median value presents a more accurate view of the regular consumer, as averages are skewed by extremely high and low spending consumers.
Total payment volume divided by the amount of transactions. The median value presents a more accurate view, as averages are skewed by transactions which have either a very high or low transaction value.
Fortumo’s consumer reach: Countries covered with DCB: Launch highlights:
Azerbaijan, Cambodia, India, Indonesia, Kazakhstan, Malaysia, Myanmar, New
Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan,
Tajikistan, Thailand, Vietnam171.5 COUNTRIES
COVERED WITH DCBBILLIONUSERS
0
5
10
15
20
25
0
1
2
3
4
5
6
7
8
9
10
0,0
0,5
1,0
1,5
2,0
2,5
3,0 FORECAST
20172016 2018 2019 2020 2021 2022 2023
Spend distribution:
WESTERN EUROPE
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Total payment volume:
FORECAST
2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023
FORECAST
Revenue per user:
4 YEAR AVERAGE CHANGE
13%2019 CHANGE
12%2019 AVERAGE REVENUE PER USER $14.3
4 YEAR AVERAGE CHANGE
22%2019 CHANGE
17%2019 MEDIAN REVENUE PER USER $7.6
Transaction values:
4 YEAR AVERAGE CHANGE
11%2019 CHANGE
13%2019 AVERAGE TRANSACTION VALUE $5.96
4 YEAR AVERAGE CHANGE
9%2019 CHANGE
22%2019 MEDIAN TRANSACTION VALUE $4.31
4 YEAR AVERAGE GROWTH
87%2019 GROWTH
37%PAYMENTVOLUME
The total amount of money paid by consumers for purchases from Fortumo's merchants through our payments platform.
Total payment volume divided by the amount of unique paying consumers. The median value presents a more accurate view of the regular consumer, as averages are skewed by extremely high and low spending consumers.
Total payment volume divided by the amount of transactions. The median value presents a more accurate view, as averages are skewed by transactions which have either a very high or low transaction value.
Fortumo’s consumer reach: Countries covered with DCB: Launch highlights:
Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland,
Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland,
United Kingdom17 COUNTRIES
COVERED WITH DCB
PRICE POINT (IN $) 2 3 4 5 7 11 23
PRICE POINT POPULARITY % PRICE POINT REVENUE %
Overview of the actual prices paid by consumers for digital content, indicating which pricing is most frequently used and which pricing brings the most revenue to digital service providers.
Our comment:
As a high-income region with a modern direct carrier billing infrastructure, carrier billing continues to grow steadily in Western Europe.
Recent changes in legislation for the region (GDPR, PSD2 and related Strong Customer Authentication (SCA) requirements) support the growth of carrier billing in the region, as substantially less consumer data is collected, while carrier billing is exempt from PSD2 and SCA regulations.
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
356 MILLIONUSERS
0
1
2
3
4
5
6
7
8
9
0
5
10
15
20
25 FORECAST
20172016 2018 2019 2020 2021 2022 2023
CENTRAL & EASTERN EUROPE
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Total payment volume:
Spend distribution:
FORECAST
2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023
FORECAST
Revenue per user:
4 YEAR AVERAGE CHANGE
19%2019 CHANGE
0%2019 AVERAGE REVENUE PER USER $8.3
4 YEAR AVERAGE CHANGE
29%2019 CHANGE
-6%2019 MEDIAN REVENUE PER USER $4.6
Transaction values:
Our comment:
4 YEAR AVERAGE CHANGE
20%2019 CHANGE
-3%2019 AVERAGE TRANSACTION VALUE $3.83
4 YEAR AVERAGE CHANGE
15%2019 CHANGE
-31%2019 MEDIAN TRANSACTION VALUE $2.82
4 YEAR AVERAGE GROWTH
91%2019 GROWTH
FORECAST
20172016 2018 2019 2020 2021 2022 2023
42%PAYMENTVOLUME
PRICE POINT (IN $) 2 3 4 5 15 50
PRICE POINT POPULARITY % PRICE POINT REVENUE %
Overview of the actual prices paid by consumers for digital content, indicating which pricing is most frequently used and which pricing brings the most revenue to digital service providers.
Central & Eastern Europe is with carrier billing exactly where it’s geographically: between Europe and Asia. Traditional payment method ownership is lower than in Western Europe, but higher than in Asia.
Carrier billing continues to grow in the region. As with Western Europe, the European Union members here been impacted by GDPR and PSD2, which provide competitive advantages to carrier billing.
The total amount of money paid by consumers for purchases from Fortumo's merchants through our payments platform.
Total payment volume divided by the amount of unique paying consumers. The median value presents a more accurate view of the regular consumer, as averages are skewed by extremely high and low spending consumers.
Total payment volume divided by the amount of transactions. The median value presents a more accurate view, as averages are skewed by transactions which have either a very high or low transaction value.
Fortumo’s consumer reach: Countries covered with DCB: Launch highlights:
Albania, Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech
Republic, Estonia, Georgia, Hungary, Kosovo, Latvia, Lithuania, North Macedonia,
Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Ukraine22 COUNTRIES
COVERED WITH DCB330 MILLIONUSERS
0
3
6
9
12
15
0
1
2
3
4
5
6
7
0,0
0,5
1,0
1,5
2,0
MIDDLE EAST & AFRICA
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Total payment volume:
Spend distribution:
FORECAST
2017 2018 2019 2020 2021 2022 20230
5
10
15
20
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2017 2018 2019 2020 2021 2022 2023
FORECAST
Revenue per user:
4 YEAR AVERAGE CHANGE
13%2019 CHANGE
32%2019 AVERAGE REVENUE PER USER $14.9
4 YEAR AVERAGE CHANGE
13%2019 CHANGE
43%2019 MEDIAN REVENUE PER USER $5.2
Transaction values:
Our comment:
4 YEAR AVERAGE CHANGE
-6%2019 CHANGE
-9%2019 AVERAGE TRANSACTION VALUE $2.57
4 YEAR AVERAGE CHANGE
-6%2019 CHANGE
-23%2019 MEDIAN TRANSACTION VALUE $1.97
4 YEAR AVERAGE GROWTH
1144%2019 GROWTH
3485%PAYMENTVOLUME
0
5
10
15
20
25
30
PRICE POINT (IN $) 0.5 1 2 3 5 10 18
PRICE POINT POPULARITY % PRICE POINT REVENUE %
Overview of the actual prices paid by consumers for digital content, indicating which pricing is most frequently used and which pricing brings the most revenue to digital service providers.
Improvements in technical carrier billing platforms of telcos and increased payouts have enabled the growth of carrier billing in the region during 2019.
However, the region continues to remain a challenge due to complex local regulations and content-specific restrictions imposed not just to carrier billing, but digital content in general.
The total amount of money paid by consumers for purchases from Fortumo's merchants through our payments platform.
Total payment volume divided by the amount of unique paying consumers. The median value presents a more accurate view of the regular consumer, as averages are skewed by extremely high and low spending consumers.
Total payment volume divided by the amount of transactions. The median value presents a more accurate view, as averages are skewed by transactions which have either a very high or low transaction value.
Fortumo’s consumer reach: Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Palestine, Qatar,
Saudi Arabia, Senegal, Tunisia, Turkey, United Arab Emirates15
Countries covered with DCB: Launch highlights:
335 COUNTRIESCOVERED WITH DCB
MILLIONUSERS
FORECAST
20172016 2018 2019 2020 2021 2022 2023
LATIN AMERICA
Direct carrier billing: 2019 global overview by Fortumofortumo.com
Total payment volume:
Spend distribution:
FORECAST
2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023
FORECAST
Revenue per user:
4 YEAR AVERAGE CHANGE
20%2019 CHANGE
26%2019 AVERAGE REVENUE PER USER $6
4 YEAR AVERAGE CHANGE
31%2019 CHANGE
55%2019 MEDIAN REVENUE PER USER $3.5
Transaction values:
Our comment:
4 YEAR AVERAGE CHANGE
5%2019 CHANGE
-6%2019 AVERAGE TRANSACTION VALUE $1.48
4 YEAR AVERAGE CHANGE
6%2019 CHANGE
-3%2019 MEDIAN TRANSACTION VALUE $1.58
FORECAST
20172016 2018 2019 2020 2021 2022 2023
4 YEAR AVERAGE GROWTH
9%2019 GROWTH
-6%PAYMENTVOLUME
PRICE POINT (IN $) 0.7 1 1.1 1.2 1.5 2.3 2.4 2.6
PRICE POINT POPULARITY % PRICE POINT REVENUE %
Overview of the actual prices paid by consumers for digital content, indicating which pricing is most frequently used and which pricing brings the most revenue to digital service providers.
Latin America is the obvious laggard out of all the regions where Fortumo operates. Challenges described in the introduction of the report (technical solutions, payouts, taxation and legislation) are most impactful here. None of the globally leading digital service providers have launched telco partnerships in the region, except in a limited amount of countries.
However, things are starting to change in Latin America as well, driven by leading operators such as Telefónica, who have seen excellent results from launching direct carrier billing for their primarily prepaid subscriber base.
The total amount of money paid by consumers for purchases from Fortumo's merchants through our payments platform.
Total payment volume divided by the amount of unique paying consumers. The median value presents a more accurate view of the regular consumer, as averages are skewed by extremely high and low spending consumers.
Total payment volume divided by the amount of transactions. The median value presents a more accurate view, as averages are skewed by transactions which have either a very high or low transaction value.
Fortumo’s consumer reach: Countries covered with DCB:
Brazil, Colombia, Ecuador, Guatemala, Mexico, Paraguay, Uruguay7 COUNTRIESCOVERED WITH DCB305 MILLION
USERS
0
1
2
3
4
5
6
7
8
0,0
0,5
1,0
1,5
2,0
2,5
3,0
0
5
10
15
20
For more information, please visit:
https://fortumo.com
https://www.linkedin.com/company/fortumo-ltd-?trk=biz-companies-cym
Fortumo is a digital enablement platform for app stores and digital service providers for user acquisition, monetization and retention. The company connects service providers with more than 280 mobile operators across Asia, Europe, Latin America, the Middle East and Africa.
Service providers use Fortumo’s platform to manage the end-to-end customer lifecycle of mobile users on these networks through the company’s bundling, carrier billing and messaging solutions.
Fortumo’s platform is used by thousands of leading digital merchants including Google, Amazon, Spotify, Electronic Arts, Schibsted, OLX and EasyPark. Founded in 2007, Fortumo has offices in San Francisco, Madrid, Delhi, Singapore, Estonia, Hanoi and Jakarta. For more information, please visit https://fortumo.com.
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 © 2020 Fortumo | All rights reserved.
