Carrier billing in 2016: Commonwealth of Independent States
Market report by Fortumo
IntroductionThis white paper gives an overview of the mobile payments landscape of CIS (Commonwealth of Independent States). It covers 7 markets where where Fortumo has coverage: Russia, CIS associate member Ukraine, Kazakhstan, Belarus, Azerbaijan, Moldova and Armenia.
Carrier billing in 2016: Commonwealth of Independent States
Carrier billing in 2016: Commonwealth of Independent States
CIS is significantly different from both Europe and Asia in that Russian culture and language are the predominant ones in the region. This also extends to online content consumption: Yandex provides significant competition to Google while VK prevails over Facebook. Digital content merchants entering this region should keep this in mind both from a localization and user acquisition perspective.
Fortumo’s CIS market report gives a high-level overview of the biggest markets in the region as well as insights on user spending behavior, device preferences and the mobile operator ecosystem. Data presented in the white paper has been taken from Fortumo’s cross-platform mobile payment solution as well as external public sources of information.
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].
Carrier billing in 2016: Commonwealth of Independent States
RussiaMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
38.9 years
42%
143 million
Smartphone penetration (of all mobile phones):
Population:
$13,000
248 million
Mobile broadband access:
Prepaid SIM market share:Credit & debit card penetration:
21% / 44%
41%
82%
Mobile phones in market:
Currency: 1 Russian Ruble (RUB) = $0.015 (exchange rate as of June 3rd, 2016)
Important note: The Russian ruble has significantly declined compared to USD.
Share of carrier billing in payment mix (SuperDataResearch): 22.3%
Carriers supported by Fortumo:
Payment types:
Localization:
RussiaCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $11.7
one-off transactionssubscriptions (weekly and monthly billing)
MTS (34%) Beeline (25%) Megafon (24%) Tele2 (24%) Motiv (2%) Smarts (1%)
Average transaction size: $2
Traffic sources:
73% mobile
22% desktop
5% tablet Recommended, 83% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): -28%
(2nd most popular payment method)
Carrier billing in 2016: Commonwealth of Independent States
UkraineMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
40.6 years
58%
45 million
Smartphone penetration (of all mobile phones):
Population:
$4,000
62 million
Mobile broadband access:
Prepaid SIM market share:Credit & debit card penetration:
27% / 39%
16%
91%
Mobile phones in market:
Currency: 1 Ukrainian Hryvna (UAH) = $0.04(exchange rate as of June 3rd, 2016)
Important note: The Ukrainian Hryvnia has significantly declined compared to USD.
Share of carrier billing in payment mix (SuperDataResearch): 6.7%
Carriers supported by Fortumo:
Payment types:
Localization:
UkraineCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $6.9
one-off transactionssubscriptions (weekly and monthly billing)
Kyivstar (43%) Vodafone (35%) Life:) (21%) TriMob (1%)
Average transaction size: $1
Traffic sources:
51% mobile
38% desktop
11% tablet Recommended, 76% of users have browser language set to Russian and 14% to Ukrainian.
Transaction volume change (from March 2015 - May 2015): +20%
(4th most popular payment method)
Important note: Web-money services and services with political content are forbidden in Ukraine.
Carrier billing in 2016: Commonwealth of Independent States
KazakhstanMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
29.7 years
30%
18 million
Smartphone penetration (of all mobile phones):
Population:
$12,000
28 million
Mobile broadband access:
Prepaid SIM market share:Credit & debit card penetration:
11% / 32%
24%
89%
Mobile phones in market:
Currency: 1 Kazakhstani Tenge (KZT) = $0.003(exchange rate as of June 3rd, 2016)
Carriers supported by Fortumo:
Payment types:
Localization:
KazakhstanCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $18.9
one-off transactionssubscriptions (weekly and monthly billing)
Kcell (47%) Beeline (37%) Tele2 (13%) Altel (3%)
Average transaction size: $1.3
Traffic sources:
59% mobile
38% desktop
3% tablet Recommended, 86% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): +57%
Carrier billing in 2016: Commonwealth of Independent States
BelarusMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
40.6 years
10 millionPopulation:
$7,000
12 million
Mobile broadband access:
Prepaid SIM market share:
Credit & debit card penetration:
13% / 39%
42%
52%
Mobile phones in market:
Currency: 1 Belarussian Ruble (BYR) = $0.00005(exchange rate as of June 3rd, 2016)
Carriers supported by Fortumo:
Payment types:
Localization:
BelarusCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $13.8
one-off transactionssubscriptions (weekly and monthly billing)
MTS (47%) Velcom (41%) Life:) (11%)
Average transaction size: $1.5
Traffic sources:
37% mobile
60% desktop
3% tablet Recommended, 96% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): +12%
Carrier billing in 2016: Commonwealth of Independent States
AzerbaijanMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
30.1 years
60%
10 million
Smartphone penetration (of all mobile phones):
Population:
$8,000
9 million
Mobile broadband access:
Prepaid SIM market share:Credit & debit card penetration:
8% / 15%
38%
84%
Mobile phones in market:
Currency: 1 Azerbaijani Manat (AZN) = $0.67(exchange rate as of June 3rd, 2016)
Carriers supported by Fortumo:
Payment types:
Localization:
AzerbaijanCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $16.8
one-off transactionssubscriptions (weekly and monthly billing)
Azercell (55%) Bakcell (35%) Nar Mobile (10%)
Average transaction size: $1.9
Traffic sources:
45% mobile
53% desktop
2% tablet Recommended, 74% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): -46%
Carrier billing in 2016: Commonwealth of Independent States
MoldovaMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
35.7 years
25%
4 million
Smartphone penetration (of all mobile phones):
Population:
$3,000
4 million
Mobile broadband access:
Prepaid SIM market share:Credit & debit card penetration:
6% / 15%
54%
69%
Mobile phones in market:
Currency: 1 Moldovan Leu (MDL) = $0.05(exchange rate as of June 3rd, 2016)
Carriers supported by Fortumo:
Payment types:
Localization:
MoldovaCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $10.2
one-off transactionssubscriptions (weekly and monthly billing)
Orange (54%) MoldCell (30%) IDC (11%) Unite (5%)
Average transaction size: $1.9
Traffic sources:
25% mobile
69% desktop
6% tablet Recommended, 80% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): -12%
Carrier billing in 2016: Commonwealth of Independent States
ArmeniaMarket profile
Gross National Income (GNI)per capita (IMF 2014 estimate):
Median age:
33.7 years
3 millionPopulation:
$4,000
3 million
Mobile broadband access:
Prepaid SIM market share:
Credit & debit card penetration:
5% / 8%
38%
79%
Mobile phones in market:
Currency: 1 Armenian Dram (AMD) = $0.0021(exchange rate as of June 3rd, 2016)
Carriers supported by Fortumo:
Payment types:
Localization:
ArmeniaCarrier billing in 2016: Commonwealth of Independent States
Carrier billing landscapeMarch 2016 - May 2016
Quarterly ARPPU: $13.3
one-off transactionssubscriptions (weekly and monthly billing)
MTS (60%) Beeline (20%) Ucom (20%)
Average transaction size: $2
Traffic sources:
41% mobile
55% desktop
4% tablet Recommended, 71% of users have browser language set to Russian.
Transaction volume change (from March 2015 - May 2015): +45%
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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.
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