November news recap: Tencent takes the cake

November news recap: Tencent takes the cake

Another month behind us and the holiday season is soon ahead! Time to take a look back at what happened in the digital industry during November. This month’s company highlight goes to Tencent who exceeded Facebook in its value, acquired a stake in Snap and is rumored to be swapping stock with Spotify. For other stories in the industry, check out our recap below.

Make sure you don’t also miss out on our market report on the Nordics, and our latest white paper on increasing revenue through reducing payment failures.

Here’s what happened in November:

General mobile



Digital content


Subscriptions: the new norm and what it means for telcos

Subscriptions: the new norm and what it means for telcos

One of the key challenges for mobile operators in emerging markets is converting prepaid SIM card users into postpaid customers. From the telco perspective, postpaid users are more valuable for several reasons:

  • Service distribution costs (e.g. offline recharges of SIM cards) are lower, which increases the telco’s margin on services sold
  • Less likely to churn to a competitor due to the contractual relationship, in contrast with simply throwing a prepaid SIM away and buying a new one
  • ARPU and LTV increases as users are charged on a recurring basis, they are not capped on spending by their balance and services paid for in fixed price packages may partially go unused

Moving to a recurring revenue model is not unique to the telco industry: Gartner estimates that 80% of software vendors will be using a subscription-based business model by 2020. Many leading digital merchants already use the model, including Microsoft, Adobe as well as virtually all music and video streaming services.

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Carrier billing deployment tracker: November 2017

Where are leading digital merchants using direct carrier billing and what's the capacity of telcos in benchmark countries to provide payment services to such merchants?

Check out the latest status of Facebook, Apple, Google, Spotify, Netflix, Riot Games and Amazon below! Carrier billing deployment tracker: August 2017

Carrier billing in the Nordics: market report by Fortumo

Carrier billing in the Nordics: market report by Fortumo

Our latest market report gives an overview of the mobile payments landscape in Sweden, Denmark, Finland and Norway.

While these markets have significantly high bank card ownership, carrier billing is still a preferred option for many consumers thanks to its simplicity and safety. Compared to credit card payments, payments are completed much quicker and no personal data is transmitted during the checkout process, ensuring the consumer that no fraud or identity theft can be conducted. As a result, carrier billing 10% and 21% market share from digital content payments in these markets.

Over the past year, revenue per user has substantially grown in three of the four markets. Leading digital merchants including Facebook, Apple, Google, Netflix and Riot Games have also begun to leverage carrier-based payments in the region. This indicates the commercial and technical readiness of the Nordic mobile operators for increase user spend by providing them with a universally accessible, simple online payment method.

In the report, we have brought out a high-level overview of each market’s digital ecosystem, as well as specific data on carrier billing that helps merchants localize their approach to each country.

Enter your contact details below and download the report immediately!

Carrier billing for recurring payments in India: report by Fortumo

Carrier billing for recurring payments in India: report by Fortumo

India is one of the fastest growing mobile markets of the world with an estimated 260 million smartphone users. According to industry forecasts, there will be 600 million smartphone users in the market by 2020.

With user acquisition costs 2x lower than the global average, the market has significant potential for digital content merchants. At the same time, generating revenue from the acquired user base has so far been challenging to merchants.

Carrier billing can resolve the payments challenge for digital merchants due to several key benefits over other payment methods:

  • Payments are frictionless and simple for users as they do not have to enter any details about themselves to process the payment
  • Every feature phone and smartphone owner is able to make payments using carrier billing; new demographic segments can be targeted which can not be reached with other payment methods
  • Carrier billing is built for microtransactions, which are better suited for low-income emerging markets like India than card-based payments, both due to user spending behaviour and the commercial setup
  • Personal data is not shared during the checkout process, reducing concerns over fraud and identity theft for consumers
  • Carriers are motivated to promote merchant services to their users as it generates revenue for them

Fortumo provides carrier billing with recurring payments capability to 60% of India's mobile users. Download our latest report and find out how to tap into the growing digital economy of the country!

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