Carrier billing in Western Europe: 2016 market report by Fortumo

Carrier billing in Western Europe 2016 market report by Fortumo

Our latest market report gives an overview of the mobile payments landscape of Western Europe. It covers 12 markets where Fortumo has coverage. These markets are Germany, France, United Kingdom, Italy, Spain, Netherlands, Belgium, Greece, Portugal, Austria, Switzerland and Ireland.

Even though Western Europe is a region with high income and good access to bank-based payment services, many people still prefer to use alternative payment methods such as carrier billing. This is illustrated by the fact that carrier billing is among the top 3 payment methods for digital gaming in most of the countries profiled.

Carrier billing is popular in Western Europe primarily due to two reasons. As carrier billing does not require users to sign up for any accounts, payments can be completed with one step. This creates an improved checkout experience over bank-based payment solutions, especially on mobile devices. Furthermore, high awareness of card-not-present fraud has increased the usage of carrier billing as a safe, alternative payment method. This is because with carrier billing, no personal or sensitive data is transmitted during the checkout process.

It’s important to note that Western Europe is a primarily postpaid market, e.g. users have a contract with their mobile operator and pay for items purchased through carrier billing at the end of each month. This creates a higher risk of friendly fraud (chargebacks) compared to emerging markets where most users have a prepaid SIM card. To find out how to mitigate friendly fraud, please read our white paper on risk management with carrier billing.

Fortumo’s Western European market report gives a high-level overview of the biggest markets in the region:

  • Demographic data, mobile coverage and banking access of each market
  • Carrier billing spend behavior of users in each market (quarterly revenue per paying user, average transaction size)
  • Overview of mobile operators and their market shares
  • Overview of traffic sources by platform and recommendations for localization

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