In our previous blog posts we have often stressed price localization as one of the key strategies to growing revenue through carrier billing. In the 83 countries that Fortumo covers, average transaction sizes can vary more than 100 times! The reason for this is that income is very different between growing and mature economies and additionally depends on how willing people are to spend money through their mobile devices.
The easiest way to understand pricing localization is taking a look at a completely different industry - fast food. The Economist has put together a Big Mac Index which helps to explain why it makes sense to charge a different price for burgers in different countries. The same logic applies to digital content - whether it’s apps, online games or streaming services.
Check out the infographic (click on image for a high-res version) based on user spending data from web games, social networks and streaming services using Fortumo to collect payments. The infographic shows how pricing should be localized.
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