Hidden costs of payment processing

Hidden costs of payment processing

Card-based payments are still the primary method of collecting revenue from virtual and digital content. SuperDataResearch indicates that credit cards and digital wallets account for 56% of transactions done in digital gaming.

But the importance of carrier billing has grown as well. From 2013 to 2015, carrier billing’s share in digital gaming grew by 20%, from 12% up to 14.4%. In Asia Pacific, Latin America and Eastern Europe, its market share even more substantial (17.1%, 21% and 20.9%, respectively). As overall transaction volumes have also gone up, this indicates a growing interest from merchants in adopting the payment method.

When considering integrating new payment solutions, an important thing for merchants to keep in mind is payment processing costs. When we talk about microtransactions, card fees are substantial: out of each $1 transaction, over 30% goes to the payment processor (~3% fee of the transaction value and the ~$0.3 transaction fee). But what other costs are related to card-based payments and how does carrier billing compare?

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May update: carrier billing deployment tracker infographic

Time for an update to our infographic on countries where Facebook, Apple, Google, Spotify, Netflix and Riot Games are using carrier billing. For previous versions of the infographic, check out the ones from February and November.

What's changed since the last update? Netflix has partnered with carriers in France and India, while Google has launched carrier billing in Pakistan.

As a result, we have updated India's score on carrier billing from C to B and Pakistan from D to C. Large merchants launching payments in the market indicate both technical capability and commercial readiness by carriers to bring their quality of digital services to the next level and it's great to see two of the fastest growing mobile markets improve in this aspect.

Congratulations to both the merchants and the mobile operators on the launches! For the updated situation on carrier billing deployments by the biggest digital merchants in the world, check out the infographic below. For a gigantic version of the visual, just click on it.

May update: carrier billing deployment tracker infographic

Carrier billing market report: Latin America

Carrier billing market report: Latin America

Our second market report of 2017 focuses on Latin America. It covers 10 of the biggest countries in the region by population where Fortumo has coverage: Brazil, Mexico, Colombia, Argentina, Venezuela, Peru, Chile, Ecuador, Bolivia and Panama.

With low bank account and payment cards ownership in all Latin American markets, carrier billing has grown to be among the top 3 payment methods for digital content across Latin America. Combined with a growing ownership of smartphones and disposable income (as witnessed also in significant growth of revenue per user), carrier billing is an excellent method of generating additional revenue from Latin America.

From this report, you will find a high-level overview of the digital ecosystem in each country. Additionally, we provide data on carrier billing in the country: money spent per user on digital services as well as pricing dynamics of the market which help you fine-tune your monetization strategy. Payments data is based on merchants using Fortumo’s Web SDK.

Fill in your contact details below and you'll be able to access the report immediately!

April in the mobile industry: news recap by Fortumo

April in the mobile industry: news recap by Fortumo

Time for our monthly overview of the biggest stories from the mobile industry!

On the carrier billing front, without a doubt the biggest news came out of India. The local regulatory body has finally given a green light to making carrier billing available to prepaid SIM users, 95% of the country’s population. This is expected to significantly boost the popularity of carrier billing in one of the largest mobile ecosystems of the world, but there is also a downside to the change.

If you want to dive deeper into data on carrier billing, check out our dynamic data map for an overview of user spending behaviour in 90+ markets.

For stories from the mobile industry in April, check out the overview below.

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India, Pakistan & Bangladesh lead the way in Fortumo’s Emerging Markets Payment Index Q1 2017

Fortumos Emerging Markets Payment Index Q1 2017

Today we are publishing our latest report on carrier billing in the fastest growing mobile markets of the world.

During Q1, the biggest growth countries for carrier billing were India, Pakistan and Bangladesh. In addition to these countries, we have also profiled Nigeria, Vietnam, Brazil, Egypt, Indonesia and Philippines.

Check out the report below for information on the carrier ecosystem, user behaviour and more!

For more insights on carrier billing, make sure to check out our other market reports and white papers.

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