3 SEP 2015

Fortumo updates its Emerging Markets Payment Index for Q2 2015

POSTED UNDER Press Release
image of Mattias Liivak

Mattias Liivak

Head of Marketing & PR, Fortumo

The mobile payments companyFortumois today publishing the newest version of its Emerging Markets Payment Index. The index highlights user spending behavior and transaction volume changes in the fastest growing smartphone markets of the world.

“The majority of new digital content users are now coming from emerging markets. The costs and complexity of entering these markets increases while the ARPU and margin is decreasing. Our payment index aims to shed some light on these hard to monetize markets by providing merchants with key insights into the fastest growing smartphone regions of the world,” said Martin Koppel, CEO and co-founder of Fortumo.

Last quarter’s payment data shows a slight decline in average revenue per paying user and transaction sizes in most markets. At the same time, transaction volumes continue to grow in double-digit percentages. In Q2, Brazil remained the market with the highest end-user spend ($17.02 quarterly average revenue per paying user) while payment volumes grew most rapidly in Pakistan (81.35% increase compared to Q1 2015).

“Digital content merchants are increasingly adapting their pricing to local markets. This means the average revenue per user remains lower than in Western markets but is compensated by a significant growth in the amount of people who can make payments. We see a similar trend continuing in the future as the percentage of the population in these markets using carrier billing continues to grow,” added Martin Koppel.

The full Emerging Markets Payment Index report can beviewed and downloaded here.
The index focuses on markets highlighted by GfK in itsglobal forecastof 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.

Data in the index has been taken from various platforms (web, mobile web, feature phones, smartphones) and app stores using Fortumo’s direct carrier billing platform. As of August 2015, more than 130,000 merchants have signed up to use Fortumo’s billing solutions.

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