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Carrier billing in the Nordics:2015 market report by Fortumo
Introduction
While mature economies with relatively strong bank infrastructure, direct carrier billing is still a popular payment method in the region (being among the top 3 payment methods for online gaming purchases in all of the countries). The reason for direct carrier billing’s success in the Nordics and rest of Europe is due to a significantly more user-friendly checkout flow, and advanced carrier technology (pricing flexibility, high price points and subscriptions). Unlike with bank cards where users have to complete detailed forms and share personal information, carrier billing payments are completed conveniently through a 1-click payment.
This market report gives an overview of the carrier billing landscape in 4 Nordic countries: Denmark, Finland, Norway and Sweden.
Access to payments: comparison of credit card, debit card, mobile and smart-phone penetrationPayment behavior (average revenue per paying user and average transaction sizes) in each marketDevices and languages used by paying usersOverview of the mobile operators market share and payment types
Andrea BoettiVP of Global Business Development & SalesFortumo
Mattias LiivakHead of Marketing & PRFortumo
If you have any questions about the data in this report, please reach out to us at [email protected].
IntroductionData in this market report has been gathered from public sources and Fortumo’s internal payments data from our cross-platform mobile payments solution. In this report, you will find an overview of:
Carri
er b
illing
in th
e No
rdics
Den
mar
kM
arke
t pro
filePopulation: 5.7 million
GDP per capita(IMF 2014 estimate):
$44,625
Median age: 41.6 years
Debit card penetration:
Credit card penetration:
93.9%
15-24 age group
95.9%
25+ age group
34% 36.9%
15-24 age group 25+ age group
Smartphone penetration:
81%
Carri
er b
illing
in th
e No
rdics
Den
mar
kCa
rrier
billin
g lan
dsca
pe
Carri
er b
illing
in th
e No
rdics
May
201
5 - O
ctob
er 2
015
Share of carrier billing in payment mix: 18.3% (3rd most popular after credit/debit cards and pre-paid vouchers)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Important note: Danish consumers have a full right to request a refund 15 days after making a purchase using carrier billing.
Monthly ARPPU: $6.31Average transaction size: $3.88
one-off transactionssubscriptions (weekly and monthly billing)
recommended, 84.1% of paying users have browser locale set to Danish
TDC (42%) Telenor (25%) Telia (20%) Hutchison 3 (13%)
54.05% mobile 38.2% desktop
7.75% tablet
Finl
and
Mar
ket p
rofile
Carri
er b
illing
in th
e No
rdics
Smartphone penetration:
68%
Population: 5.5 million
GDP per capita(IMF 2014 estimate):
$40,661
Median age: 43.2 years
Debit card penetration:
Credit card penetration:
98.2%
15-24 age group
96.5%
25+ age group
26.6% 67%
15-24 age group 25+ age group
Finl
and
Carri
er b
illing
lands
cape
Carri
er b
illing
in th
e No
rdics
May
201
5 - O
ctob
er 2
015
Share of carrier billing in payment mix: 21% (2nd most popular payment method after credit/debit cards)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Monthly ARPPU: $5.92Average transaction size: $3.88
one-off transactionssubscriptions (weekly and monthly billing)
recommended, 80.7% of paying users havebrowser locale set to Finnish
Sonera (35%)Elisa (39%) DNA (25%) Others (1%)
78.77% mobile 16.82% desktop
4.4% tablet
Nor
way
Mar
ket p
rofile
Carri
er b
illing
in th
e No
rdics
Smartphone penetration:
70%
Population: 5.2 million
GDP per capita(IMF 2014 estimate):
$67,166
Median age: 39.1 years
Debit card penetration:
Credit card penetration:
97.8%
15-24 age group
98.8%
25+ age group
25% 76.2%
15-24 age group 25+ age group
Nor
way
Carri
er b
illing
lands
cape
Carri
er b
illing
in th
e No
rdics
May
201
5 - O
ctob
er 2
015
Share of carrier billing in payment mix: 19.9%(3rd most popular after credit/debit cards and pre-paid vouchers)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Monthly ARPPU: $5.55Average transaction size: $3.73
one-off transactionssubscriptions
recommended, 53.9% of paying users have browser locale set to Norway
Telenor (50%) NetCom (23%) Tele2 (6%)Network
Norway (12%)
60.1% mobile 31.77% desktop
8.13% tablet
Others (9%)
Swed
enM
arke
t pro
file
Carri
er b
illing
in th
e No
rdics
Smartphone penetration:
83%
Population: 9.3 million
GDP per capita(IMF 2014 estimate):
$46,219
Median age: 41.2 years
Debit card penetration:
Credit card penetration:
96.9%
15-24 age group
97.8%
25+ age group
16.2% 52.8%
15-24 age group 25+ age group
Swed
enCa
rrier
billin
g lan
dsca
pe
Carri
er b
illing
in th
e No
rdics
May
201
5 - O
ctob
er 2
015
Share of carrier billing in payment mix: 11.2%(3rd most popular after credit/debit cards and e-wallets)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Important note: Consumers in Sweden need to set up an account with WyWallet before they are able to make carrier billing transactions.
Monthly ARPPU: $6.28Average transaction size: $3.36
one-off transactionssubscriptions (weekly billing)
recommended, 70.1% of paying users have browser locale set to Swedish
Telia (37%) Tele2 (28%) Telenor (17%) Hi3g (12%) Others (6%)
72.35% mobile 18.63% desktop
9.02% tablet
Addi
tiona
l rea
ding
Carri
er b
illing
in th
e No
rdics
Carrier billing in Central & Eastern Europe: free white paper by Fortumo
How to avoid cannibalization between online payment methods – white paper by Fortumo
How is fraud prevented with carrier billing?
Read now
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Fortumo allows any merchant to set up payment processing for web and mobile services, games or apps. Users with a mobile phone are then able to make one-click payments using Fortumo without the need for a credit card: payments are charged to their mobile operator bill instead. Fortumo supports payments in more than 90 countries through 350 mobile operators. Founded in 2007, Fortumo has offices in Estonia, San Francisco, Beijing, Delhi, Mumbai, Singapore and London and is backed by Intel Capital and Greycroft Partners. Get started with mobile payments at 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 © 2015 Fortumo | All rights reserved.
