This case study looks at how the digital publisher Tempo launched carrier billing in Indonesia to acquire more users for its paid content subscriptions.
Tempo is leading publisher in Indonesia, publishing multiple weekly and daily magazines, as well as running the Tempo.co online news portal.
What was the challenge?
In Indonesia, only 2% of people have a credit card while 60% of the population owns a smartphone. This creates a challenge for digital publishers, since the majority of people accessing digital media do not have means to pay for premium services.
Carrier billing resolves this issue by allowing any prepaid or postpaid SIM card owner to charge purchases directly to their phone bill:
What was Fortumo’s solution?
Tempo launched carrier billing through Fortumo’s Hosted DCB solution. Hosted DCB connects Tempo with the 255 million subscribers of local mobile operators (Telkomsel, Indosat Ooredoo, XL Axiata, 3 and Smartfren) for carrier billing.
The checkout flow and localization of payment pages is hosted by Fortumo, which allowed Tempo to launch carrier billing with minimal development effort, as one integration enables payment capabilities with all mobile operators in the country.
In addition to Hosted DCB, Tempo utilizes Fortumo’s Subscription Engine, which provides end-to-end user lifecycle management for recurring payments. The Subscription Engine manages subscription activations, renewals and terminations on behalf of Tempo. This lets Tempo easily launch marketing promotions (such as discounts and free trials) while reducing subscriber churn through built-in grace period and failed payment retry mechanisms.
What were the results?
Today, Tempo offers any prepaid and postpaid mobile user the option to upgrade their reading experience by subscribing to its Silver, Gold and Platinum packages ranging from IDR 9,900 ($0.6) to IDR 15,900 ($1) per week.
Commenting on the launch, Tempo Media Group’s Head of Digital Business Prathita S Putra said: “Not all of the potential buyers of Tempo have a credit card to make a transaction. Therefore, the use of carrier billing is ultimately aimed at making it easier for readers to get exclusive and quality news from Tempo. From a number of potential partners, Tempo sees Fortumo having an easier transaction flow.”
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