Payment index in emerging markets

Emerging MarketsPayment Index: Q1 2016

Report by Fortumo

Emerging Markets Payment Index: Q1 2016

The Emerging Markets Payment Index focuses on countries highlighted by GfK in its global forecast of top smartphone markets for growth by value in 2015. These countries are India, Indonesia, South Africa, Brazil, Pakistan, Nigeria, Egypt and Vietnam.

Issues preventing spread of traditional banking services in growing economies (identity and reputation management, debt enforcement, informal economies) are entrenched and not getting solved any time soon. India and Vietnam have a credit card penetration below 4% and in Nigeria 99.3% of all card transactions are conducted on ATMs.

The payment index aggregates carrier billing data from various platforms (web, mobile web, feature phones, smartphones) and app stores using Fortumo carrier billing.

* - 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.

The Emerging Markets Payment Index is intended to be used by digital media companies, web and game developers for benchmarking their revenue in markets with high smartphone growth and low credit card penetration.

Introduction

http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020%5Bv2%5D.pdf

http://databank.worldbank.org/data/reports.aspx?source=1228

http://www.prnewswire.com/news-releases/tech-devices-in-2015-emerging-markets-dominate-growth-increasing-by-10b-277550901.html

http://www.prnewswire.com/news-releases/tech-devices-in-2015-emerging-markets-dominate-growth-increasing-by-10b-277550901.html


Population:

1.3 billionMedian age:

25.9

Mobile users:

1 billion

GDP per capita:

$5,855

Mobile broadband access: Prepaid SIM market share:

95% of mobile population14% of mobile population

Credit & debit card penetration (World Bank, 2014):

4% / 22%

India

Quarterly ARPPU Average Payment Size

Carrier billing ARPPUQ4 ‘15: Q1 ‘16:

Carrier billing ARPPU change QoQ:

Transaction Volume ChangeCarrier billing transaction volume change QoQ:

Carrier billing average transaction sizeQ4 ‘15: Q1 ‘16:

Carrier billing payment size change QoQ:

$3.7$5.8

+57%

$0.9$1.5

+67%

+2%* - ARPPU stands for average revenue per paying user, not to be confused with ARPU (average revenue per user). ARPPU is calculated by dividing the total money spent by users with the number of unique users who made payments.

http://databank.worldbank.org/data/reports.aspx?source=1228


Population:

191 millionMedian age:

21.2

Mobile users:

128 million

GDP per capita:

$4736



Credit & debit card penetration:

0.1% / 3%

Pakistan







$4.8$4.4

-8%

$0.8$0.8

0%

-17%


Population:


27.9

Mobile users:

260 million

GDP per capita:

$10,641




2% / 26%

Indonesia







$5.7$5.5

-4%

$0.7$0.7

-5%

0%


Population:


27.4

Mobile users:

94 million

GDP per capita:

$5,635




2% / 27%

Vietnam







$2.6$2.5

-4%

$0.4$0.5

+25%

-10%


Population:


30.5

Mobile users:

209 million

GDP per capita:

$16,096




32% / 59%

Brazil







$10.5$10.1

-4%

$1.3$1.4

+8%

-28%


Population:


19.1

Mobile users:

151 million

GDP per capita:

$6,031




3% / 36%

Nigeria







$2.8$2.4

-14%

$0.4$0.3

-25%

+8%


Population:


24.0

Mobile users:

92 million

GDP per capita:

$10,877




2% / 10%

Egypt







$4$5

+25%

$0.4$0.4

0%

+9%


Population:


25.9

Mobile users:

55 million

GDP per capita:

$13,046




14% / 55%

South Africa







$10.6$10.4

$1.9$1.9

0%

+5%

-2%

Additional reading

Market report: carrier billing in Central & Eastern Europe

Free tool: carrier billing revenue calculator

E-book: crash course into direct carrier billing

Read now

Read now

Read now

https://blog.fortumo.com/free-e-book-direct-carrier-billing-crash-course/

https://blog.fortumo.com/free-tool-carrier-billing-revenue-calculator/

https://blog.fortumo.com/free-market-report-carrier-billing-in-central-eastern-europe/

https://fortumo.comhttps://facebook.com/fortumohttps://twitter.com/fortumohttps://www.linkedin.com/company/fortumo-ltd

Fortumo is a mobile payments company that enables direct carrier billing with more than 350 mobile operators in 90+ countries. Fortumo's payment products work across a wide range of platforms including desktop devices, smartphones, feature phones, tablets and smart TV-s. These products give consumers a simple, 1-click payment method to charge online purchases to their phone bill. For app stores, digital media companies and game developers, Fortumo provides one integration with 350 mobile operators as well as a single point of contact for settlements, reporting, support and infrastructure upgrades. Founded in 2007, Fortumo has offices in Estonia, San Francisco, Beijing, Delhi, Mumbai, Singapore and London and is backed by Intel Capital and Greycroft Partners.

This document is for informational purposes only. Fortumo and the authors make no expressed or implied warranties in this document. Fortumo and the author(s) make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in this document. Any opinions expressed in this document are subject to change without notice. This document may be based on a number of assumptions and different assumptions could result in materially different results. This document should not be regarded by recipients as a substitute for obtaining independent advice and/or the exercise of their own judgement, and is not to be relied upon by recipients. Fortumo and the authors, and any of their members, directors, employees or agents do not accept any liability for any loss or damage arising out of the use of all or any part of this document. Copyright © 2016 Fortumo | All rights reserved.

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