OLX case study: carrier billing for online marketplaces

OLX case study: carrier billing for online marketplaces

This case study looks at how the leading marketplaces and trading platforms provider OLX Group launched direct carrier billing with Fortumo for its online classifieds portal in Poland.

Carrier billing allows consumers in Poland to pay for OLX services including highlighted ads and personalized pages by charging payments to their phone bill.

Using Fortumo’s Hosted DCB solution means minimal need to invest time into development for OLX, an increase in the number of users paying for its services and capability to roll out carrier billing internationally.

Enter your contact details below to find out how OLX is using carrier billing for revenue growth.

Subscription management: for a fee with credit cards, for free with carrier billing

Subscription management: for a fee with credit cards, for free with carrier billing

The subscription economy is growing. People want to pay and consume on demand instead of buying and owning physical goods and digital content. Digital service providers who want to meet these needs face an unpleasant challenge.

Credit card subscription payments don’t work out of the box. The card payments infrastructure has been built for one-off transactions and payment service providers do not provide recurring payment functionalities.

This means companies using a subscription business model either need to build the solution themselves or purchase it from vendors like Stripe, Recurly or Zuora. This can get costly: Stripe for example charges an extra 0.4% to 0.7% for subscription payments.

Things work a bit differently with carrier billing. Functionalities to support subscription payments are already included without extra fees. While merchants need to rely on paid solutions to process subscriptions with credit cards, it’s part of the package with Fortumo.

For this purpose, we have built our Subscription Engine on top of our direct carrier billing platform. Here’s what the Subscription Engine helps merchants with:

  • User management: manages user subscriptions on behalf of merchants; renewing user subscriptions at the correct time and frequencies and terminating or cancelling subscriptions when necessary

  • Payment retries: failed payment retries in cases where recurring charges fail (also due to technical, but mostly for commercial reasons - spend limits or low prepaid SIM account balances); our recent case study shows a 14% revenue increase from retries

  • User notifications: “invoicing” for carrier billing subscriptions is done through SMS notifications for initiation, renewals, failures and unsubscriptions; postpaid customers also receive the invoice as part of their monthly phone bill

  • Promotions: built-in support for various marketing activities, including free trial offers, promotional pricing, discounts to loyal customers and counter-offers during cancellation

  • Analytics: API-based real-time reporting for both operational (payment events to give or revoke user access) and accounting/analytics purposes (transactional data itself)

  • Refunding: automated refunding of users (either recrediting their prepaid balance or removing the charge from their monthly phone bill) through the Refund API

  • Localization and currencies: this should go without saying but in all countries where Fortumo operates, consumer-facing checkout flows and communication is localized and consumers can make payments in their local currency

As the popularity of the subscription economy grows, so too will the amount of users who want to make payments but either don’t have a credit card, abandon their cart due to the lengthy checkout process or refuse to share their personal data online.

For these consumers, carrier billing provides merchants with a globally available payment method to continue growing their revenue. If you’re thinking of taking this direction and want to take advantage of our Subscription Engine while doing so, get in touch.

October: summary of news from the digital ecosystem

October: summary of news from the digital ecosystem

What happened in the digital ecosystem during October? Without a doubt the most significant piece of content during the month was our new report on carrier billing in the MENA region. For everything else, check out the summary below.

Payments

Digital publishing

E-commerce & transportation

OTT

Gaming

Carrier billing in 2019: Middle East & North Africa

Carrier billing in 2019: Middle East & North Africa

This market report takes a look at the carrier billing landscape in the Middle Eastern & North African (MENA) region: Egypt, Turkey, Algeria, Iraq, Morocco, Saudi Arabia, Tunisia, United Arab Emirates, Jordan, Lebanon, Kuwait, Qatar, Bahrain.

In the report below, we have profiled the digital ecosystem and demographics of each of the major MENA markets. We have additionally included internal data from Fortumo, sharing information on what carrier billing solutions look like in the country, as well as data on user spending behavior.

Here is the full list of data included:

  • Demographics: population of the country, median age, localization suggestions
  • Economy: GNI per capita, bank account access, debit and credit card ownership, taxation, currency exchange rate
  • Telecommunications: mobile phone and smartphone ownership, mobile broadband access, prepaid SIM market share, telco market shares, GSMA Mobile Connectivity Index Score, platforms used to access digital content
  • Marketing: Google Play cost-per-install (CPI) as compared to the US market
  • Merchant deployments: list of leading digital merchants partnered with telcos in the country for carrier billing or bundling
  • Carrier billing data: monthly median revenue per user, transaction volume change, carrier billing popularity for digital content purchases, price point distribution, user spend distribution

Leave your contact details below and you’ll get access to the MENA market report immediately.

September overview: anything else beside PSD2?

September overview: anything else beside PSD2?

Time once again for another monthly news recap. The most important day of September for any merchant doing business in Europe was September 14th, as that was day when PSD2 came into force. However, a number of countries have delayed its implementation: Merchant Payments Ecosystem provides an overview of this. Most important to note: carrier billing is exempt from PSD2.

For our own content, last month was quite packed. Check out how carrier billing is doing in Asia, what PSD2 SCA means for merchants in Europe, how promotions help increase bundling deals’ performance and finally, why telcos should launch payments for their prepaid subscribers.

Looking ahead to October, we are going to DCX Expo and the Global DCB Summit. Get in touch if you want to meet up. On the research side, we are close to publishing our Middle Eastern & North African market report, so make sure to check back on the blog next week.

As for the biggest news stories from last month, here they are:

General mobile

Payments

Digital publishing

E-commerce & transportation

OTT

Gaming

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