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!