12 MAR 2020

How to maximize revenue when selling digital downloads?

POSTED UNDER Digital Goods Direct Carrier Billing Mobile Marketing Payments
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Mattias Liivak

Head of Marketing & PR, Fortumo

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Selling digital downloads is easier than ever before. Whether you write e-books, develop code plugins, make music, take photos or create any other type of digital content, there is a large number of platforms that help you quickly set up your shop.

Some of the most popular turnkey solutions for this are Shopify, WooCommerce and Magento. If you’re selling downloads on your blog, adding payments to it is just as easy thanks to  payment plugins.

But while setting the sales solution up is itself easy, converting visitors into people who pay for digital downloads is slightly more difficult. In this post, we explain why launching a storefront is just the first step.

Not everyone has access to standard payment solutions

The standard payment solutions used for selling anything online are credit card payments and PayPal. While many people have access to these payment methods, not everyone does. Here’s a comparison of the countries with the biggest number of internet users and people who own a credit card

PayPal has the same problem when it comes to international audiences: the digital wallet has 295 million active users which is roughly equal to the number of internet users in the US.

If your audience is located only in countries like the United States or Japan, you have nothing worry about. But if you have any international visitors to your website, the majority of people are probably not able to pay for your digital content.

Increase international sales through local payment methods

Just because people are not using credit cards or PayPal in other countries doesn’t mean they are not purchasing anything online. They simply use local payment methods that are more accessible to them. Brazil for example has PagSeguro, India has Paytm and Indonesia has GrabPay and GoPay

Specifically which countries to add local payment options to depends on what you find when looking at your web traffic:

  • What are the countries where you have the biggest number of visitors from?
  • Which of these countries have a high percentage of visitors to sales?
  • In comparison, which countries have a low percentage of visitors to sales?

This helps put together a priority list of countries where you see a higher number of visitors from, where credit cards payments are underperforming and for which you can start researching local options.

Adding these local payment options increases the amount of people who are able to make payments. But PagSeguro, Paytm, GrabPay and GoPay all require the user to create an account beforehand. If a user ends up on your side who doesn’t have an account with that payment solution provider, you are back to square one.

Mobile payments combined with local payments captures the entire audience

What is something you never leave the home without, beside your keys? Your phone. For selling digital downloads, it’s also possible to collect payments through the user’s phone bill. Here’s how it works:

These type of payments are called carrier billing: charging users either on their monthly phone bill or deducting the payment from their prepaid SIM card. Everyone with a mobile device has access to this payment type, unlike credit cards or the local payment methods mentioned earlier.

Using a combination of the three payment solutions (credit cards, a local payment option and carrier billing) ensures that you are able to sell to any visitor of your website.

Fortumo provides a self-service platform to collect payments using carrier billing in 80+ countries. Our Web SDK can easily be added to websites to start collecting payments from any mobile phone user. Sign up for an account and get started.

Revenue calculator
Do the math: how much would your revenue increase with carrier billing?
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