Emerging markets are one of the biggest untapped opportunities to web and mobile developers as smartphone ownership in these markets is growing at a tremendous rate while revenue is not following the device ownership growth.
To challenge the misconception that emerging markets bring no revenue to developers, we have put together an index of payments from the fastest-growing emerging markets globally to highlight opportunities in fast-growth markets.
The Emerging Markets Payment Index focuses on markets highlighted by GfK in its global forecast of top smartphone markets for growth by value in 2015: India, Indonesia, South Africa, Brazil, Pakistan, Nigeria, Egypt and Vietnam*.
These markets have a significantly lower level of access to traditional online payments than mature economies. India and Vietnam for example have a credit card penetration below 2% and in Nigeria 99.3% of all card transactions are conducted on ATMs.
Our analysis indicates that the biggest growth in transaction volume from carrier billing in emerging markets is coming from India, Nigeria and Vietnam. Meanwhile, Brazil, South Africa and Indonesia have the highest spending on digital content per user.
It’s also interesting to note that the average transaction size is below $1 in most markets which makes credit card based billing unfeasible for virtual & digital goods as fixed transaction fees eat up a majority of the revenue.
Most of the markets analyzed have a double-digit quarterly growth rate in transaction volumes which shows the rapid growth of alternative payment methods among unbanked users.
The payment index aggregates data from various platforms (web, mobile web, feature phones, smartphones) and app stores. We will start providing quarterly updates to our payment index.
For 2014, the index contains data on more than 300 million transactions processed by 122,000 developers using Fortumo to collect payments in 88 countries.
If you’re interested in expanding your payment coverage through carrier billing, please fill out the form below and we will get in touch with you:
Emerging Markets Payment Index: Country-Level Breakdown of Payment Behavior
Emerging Markets Payment Index: Country-Level Breakdown of Transaction Volume Growth, Quarter-on-Quarter (%)
* China and Bangladesh have been omitted from the index as Fortumo provides carrier billing only for Android developers in China and does not operate in Bangladesh.
** Fortumo launched payments in Pakistan during June 2014; data for previous periods is therefore not available.