Emerging MarketsPayment Index: Q2 2016Report by Fortumo
Emerging Markets Payment Index: Q2 2016
The Emerging Markets Payment Index focuses on countries highlighted by GfK in its global forecast as the largest tech device growth markets of 2015. These countries are India, Nigeria, Pakistan, Vietnam, Bangladesh, Brazil, Egypt, Indonesia and Philippines.
Issues preventing spread of traditional banking services in growing economies (identity and reputation management, debt enforcement, informal economies) are entrenched in these countries and not getting solved any time soon. India and Vietnam have a credit card penetration below 4%. In Nigeria 99.3% of all card transactions are conducted on ATMs. At the same time, these markets are not “mobile first”, but “mobile only”: for most people, their smartphone is the only way to connect to the internet.
This makes carrier billing the ideal solution for collecting payments from them, as traditional payment access is limited and carrier billing provides the best purchasing experience out of all payment methods on mobile devices.
The payment index aggregates carrier billing data from various platforms (web, mobile web, feature phones, smartphones) and app stores using Fortumo carrier billing.
Should you have any questions about the report, please get in touch with us at [email protected].
The Emerging Markets Payment Index is intended to be used by digital media companies, web and game developers for benchmarking their revenue in markets with high smartphone growth and low credit card penetration.
Introduction
Emerging Markets Payment Index: Q2 2016
Currency: 1 Indian Rupee (INR) = $0.015
22%Smartphone penetration (of all mobile phones):
1 billion
Mobile broadband access:
Prepaid SIM market share:
15%
95%
Mobile phones in market:
1.3 billionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$2,000Median age:
27 years
Credit & debit card penetration:
4% / 22%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$5.8
$6.2
+7%
$1.5
$1.6
+7%
-11%* - ARPPU stands for average revenue per paying user, not to be confused with ARPU (average revenue per user). ARPPU is calculated by dividing the total money spent by users with the number of unique users who made payments.
India
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
1 Nigerian Naira (NGN) = $0.0035
27%Smartphone penetration (of all mobile phones):
151 million
Mobile broadband access:
Prepaid SIM market share:
24%
97%
Mobile phones in market:
185 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$3,000Median age:
18 years
Credit & debit card penetration:
2% / 35%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$2.4
$2.1
-13%
$0.3
$0.3
0%
-1%
Nigeria
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Pakistani Rupee (PKR) = $0.0096
31%Smartphone penetration (of all mobile phones):
128 million
Mobile broadband access:
Prepaid SIM market share:
19%
96%
Mobile phones in market:
191 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$1,000Median age:
22 years
Credit & debit card penetration:
0.1% / 2%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$4.4
$8.9
+102%
$0.8
$1
+25%
-1%
Pakistan
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Vietnamese Dong (VND) = $0.000045
35%Smartphone penetration (of all mobile phones):
120 million
Mobile broadband access:
Prepaid SIM market share:
26%
89%
Mobile phones in market:
94 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$2,000Median age:
29 years
Credit & debit card penetration:
0.1% / 2%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$2.5
$2.4
-4%
$0.5
$0.5
0%
-3%
Vietnam
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Bangladeshi Taka (BDT) = $0.013
20%Smartphone penetration (of all mobile phones):
133 million
Mobile broadband access:
Prepaid SIM market share:
13%
97%
Mobile phones in market:
162 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$1,000Median age:
24 years
Credit & debit card penetration:
0.3% / 5%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPU
Q2 ‘16:
Carrier billing average transaction size
Q2 ‘16: $0.9 $0.4
* - Fortumo launched carrier billing in Bangladesh during Q2 2016. Due to this, historical data is not yet available.
Bangladesh
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Brazilian Real (BRL) = $0.31
43%Smartphone penetration (of all mobile phones):
248 million
Mobile broadband access:
Prepaid SIM market share:
73%
74%
Mobile phones in market:
209 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$12,000Median age:
30 years
Credit & debit card penetration:
32% / 59%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$10.1
$10.8
+7%
$1.4
$1.6
+14%
-1%
Brazil
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Egyptian Pound (EGP) = $0.11
61%Smartphone penetration (of all mobile phones):
94 million
Mobile broadband access:
Prepaid SIM market share:
42%
89%
Mobile phones in market:
92 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$3,000Median age:
25 years
Credit & debit card penetration:
2% / 9%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$5
$4.3
-14%
$0.4
$0.4
0%
-16%
Egypt
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Indonesian Rupiah (IDR) = $0.000076
40%Smartphone penetration (of all mobile phones):
334 million
Mobile broadband access:
Prepaid SIM market share:
37%
98%
Mobile phones in market:
259 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$4,000Median age:
29 years
Credit & debit card penetration:
1% / 26%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$5.5
$5.3
-4%
$0.7
$0.9
+29%
-4%
Indonesia
(exchange rate as of June 30th, 2016)
Emerging Markets Payment Index: Q2 2016
Currency: 1 Philippine Peso (PHP) = $0.021
40%Smartphone penetration (of all mobile phones):
122 million
Mobile broadband access:
Prepaid SIM market share:
45%
95%
Mobile phones in market:
102 millionPopulation:
Gross National Income (GNI) per capita (IMF 2014 estimate):
$4,000Median age:
23 years
Credit & debit card penetration:
3% / 20%
Quarterly ARPPU Average Payment Size
Carrier billing ARPPUQ1 ‘16:
Q2 ‘16:
Carrier billing ARPPU change QoQ:
Transaction Volume ChangeCarrier billing transaction volume change QoQ:
Carrier billing average transaction sizeQ1 ‘16:
Q2 ‘16:
Carrier billing payment size change QoQ:
$18.9
$26.7
+41%
$3
$2.8
-7%
+229%
Philippines
(exchange rate as of June 30th, 2016)
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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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