Infographic: the new reality of carrier billing

The type of merchants who provide online services to consumers has changed significantly over the past few years. While in the past virtual goods (such as currency inside a game or premium features on social networks) made up a bulk of content sold online, today the majority of consumer spending has shifted to digital (music, video) goods, services and mobile commerce.

The business model and payment processing needs of these segments are different. For example, video streaming companies need to pay royalties to movie studios and app stores allow developers to define any price of items sold. As a result, mobile operators interested in launching these new merchants need to review their commercial and technical offering as well.

Below we have brought out a useful overview of modern online service segments, their revenue potential for carriers as well as merchant requirements for launching carrier billing.

For a bigger version of the infographic, click on it!

Infogrpahic: the new reality of carrier billing

White paper: How to create an efficient merchant audit process for direct carrier billing?

How to create an efficient merchant audit process for direct carrier billing?

In order for a digital merchant to be able to launch carrier billing, carriers need to audit the service that is provided to their subscribers. Carriers are responsible in front of the local authorities for activities that rely on their network infrastructure and local laws may additionally dictate what type of digital services can be sold to consumers. This means carriers need to make sure that services for which carrier billing is used are also compliant with local rules and regulations.

At the same time, the audit process can cause frustration:

  1. Carriers have to review each service manually, which takes a long time; monitoring live services extends the burden, especially as the number of merchants using carrier billing grows
  2. Merchants have to wait for approvals and adjust service materials based on feedback; this leads to delays in launching services or giving up on carrier billing altogether

If the carrier’s service auditing process is not streamlined, launches are either delayed (leading to lost revenue) or merchants give up on carrier billing (no additional revenue for the carrier at all).

In this white paper, carriers will find useful information about:

  1. How delays in auditing impact carrier revenue and reputation with merchants
  2. What are the benefits of delegating auditing to companies like Fortumo
  3. How to set up an audit framework with approval partners
  4. How approval partners audit, approve and monitor live services

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What is the future potential of digital content provider and carrier partnerships?

What is the future potential of digital content provider and carrier partnerships?

The focus of digital content providers has increasingly shifted towards emerging markets over the past few years. This is occurring in parallel with content consumption going digital: music streaming is replacing live concerts, Netflix cinemas etc. Smartphone ownership in Western markets has reached its peak while emerging markets continue to drive new smartphone sales.

This growth is also illustrated by an increase in mobile data consumption. As user income in these countries grows, an increasing amount of people can afford smartphones and mobile connectivity: Malaysia, Turkey and Russia are already quite close to established Western markets in terms of both income and mobile access.

The smartphone ownership “peak” in Western markets has also resulted in increased user acquisition costs and a higher competition between service providers, reducing the lifetime value of users. Smartphone owners are already used to consuming specific services, which means acquiring new users is expensive as they need to be lured over from competitors.

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March recap: stories from the mobile industry & Fortumo research

March recap: stories from the mobile industry & Fortumo research

We hope March has been a successful and productive month for you! If you’ve been too busy focusing on your own work, we have recapped the biggest news of the mobile world for you below.

In addition to that, make sure to check out Fortumo’s research from March: market report on carrier billing in CEE, how MENA’s leading livestreaming service grew their revenue by 10% with carrier billing and tips on preventing fraud on your payments platform.

And now on with the recap!

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Carrier billing in Central & Eastern Europe: 2017 market report

Carrier billing in Central & Eastern Europe: 2017 market report

Our first regional market report this year on carrier billing focuses on Central & Eastern Europe. The report profiles mobile payments in Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia.

While equal in size to the EU5 (France, Germany, Italy, Spain & UK) or US in terms of population, they are significantly more fragmented. Localization of both the digital service provided and payment methods is a key to succeed in the region.

Central & Eastern Europe is in an intermediate phase between Western markets and quickly growing emerging markets. There is relatively high ownership of traditional desktop devices, which means traditional software vendors and PC game developers have significant potential in the region.

In all of the markets profiled all but one country has reached smartphone ownership above 50%, which opens up new growth opportunities for digital merchants. At the same time, access to bank-based payments remains low, making carrier billing the perfect alternative to collect payments from Central & Eastern Europe.

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.

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