Carrier billing in 2017: Central & Eastern EuropeMarket report by Fortumo
Carrier billing in 2017: Central & Eastern Europe
Fortumo’s market report on Central & Eastern Europe pro�les carrier billing landscape in the 10 biggest countries of the region. By population, these countries are Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia. While equal in size to the EU5 (France, Germany, Italy, Spain & UK) or US in terms of population, they are signi�cantly more fragmented. Localization of both the digital service provided and payment methods is a key to succeed in the region.
Central & Eastern Europe is in an intermediate phase between Western markets and quickly growing emerging markets. There is relatively high ownership of traditional desktop devices, which means traditional software vendors and PC game developers have signi�cant potential in the region. In all of the markets pro�led all but one country has reached smartphone ownership above 50%, which opens up new growth opportunities for digital merchants. At the same time, access to bank-based payments remains low, making carrier billing the perfect alternative to collect payments from Central & Eastern Europe.
From this report, you will �nd a high-level overview of the digital ecosystem in each country. Additionally, we provide data on carrier billing in the country: money spent per user on digital services as well as pricing dynamics of the market which help you �ne-tune your monetization strategy.
In addition to carrier billing we recommend looking into the following local payment methods for the region: Yandex Money, QIWI, WebMoney, Przelewy24, PaysafeCard and Skrill. To learn how to add several payment methods to your checkout without risking revenue loss from cannibalization, check out our white paper.
Introduction
Mattias LiivakHead of Marketing & PRFortumo
If you have any questions about the data in this report, please reach out to us at [email protected].
Andrea BoettiVP of Global Business Development & SalesFortumo
Market profile December 2016 - February 2017
Russia
GNI per capita:Median age:
39143Population:
$13,000143Mobile users:
1 Russian Ruble (RUB) = $0.017
million years Gross National Income (IMF 2014 estimate)
million
Currency:
59%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
21%41%
Mobile broadband
access:
78%
Prepaid SIMmarket share:
Debit cardpenetration:
44%
Carrier billing in 2017: Central & Eastern Europe
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Russia
34%
25%
24%
15%
2%
CARRIERMARKETSHARES
Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method)
0.8 1.12 2.23 2.28 3.82
Price point Popularity % Price point Revenue %
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 84% of users have browser language set to Russian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
84%
76%
TABLET
DESKTOP
MOBILE
19%
5%
TRAFFICSOURCES
Price point (in USD)
3.91 4.78 4.89 7.96 8.14
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$16.8
$6.7 10%
42%
% denotes YoY change
19.8%
5.4%
9.4%
3.6%
31.8%
24%
7.9%6.1%
3.8%5%
1.2%1.5%
12%
19.4%
3.1%
5.1%8.5%
23%
2.5%
6.9%
Market profile December 2016 - February 2017
Ukraine
GNI per capita:Median age:
4045Population:
$4,00045Mobile users:
1 Ukrainian Hryvnia (UAH) = $0.037
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
58%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
28%16%
Mobile broadband
access:
91%
Prepaid SIMmarket share:
Debit cardpenetration:
40%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Ukraine
43%
35%
21%
1%
CARRIERMARKETSHARES
Market share of carrier billing in digital gaming (SuperdataResearch): 7% (4th most popular payment method)
0.18 0.54 0.72 0.73
Price point Popularity % Price point Revenue %
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Localization: Recommended, 78% of users have browser language set to Russian.
78%
56%
TABLET
DESKTOP
MOBILE
32%
12%
TRAFFICSOURCES
Price point (in USD)
1.09 1.81 1.82
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$6.8
$3.3 7%
10%
% denotes YoY change
10.2%
2.1%
40.1%
24.6%
0.5%0.4%
2.8%2.3%
30.5%
37.8%
3%
6.1%
12.9%
26.7%
Market profile December 2016 - February 2017
Poland
GNI per capita:Median age:
4039Population:
$14,00039Mobile users:
1 Polish Zlot (PLN) = $0.24
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
53%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
17%65%
Mobile broadband
access:
44%
Prepaid SIMmarket share:
Debit cardpenetration:
50%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Poland
30%
28%
26%
16%
CARRIERMARKETSHARES
Market share of carrier billing in digital gaming (SuperdataResearch): 19% (2nd most popular payment method)
1.15 1.2 1.73 1.81 2.59
Price point Popularity % Price point Revenue %
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 94% of users have browser language set to Polish.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
94%
58%
TABLET
DESKTOP
MOBILE
35%
7%
TRAFFICSOURCES
Price point (in USD)
2.71 5.47 5.72 7.19 7.53
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$19.6
$12.1 28%% denotes YoY change
31%
10.6%0.3%0.1%
13.4%
6.9% 0.3%0.2%
14.4%
11.1% 1.3%1%
25.3%
41.3%
3%
5.2% 10%
21.5%
0.9%2%
34%
Market profile December 2016 - February 2017
Romania
GNI per capita:Median age:
4119Population:
$10,00019Mobile users:
1 Romanian Leu (RON) = $0.23
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
50%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
12%56%
Mobile broadband
access:
55%
Prepaid SIMmarket share:
Debit cardpenetration:
46%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Romania
10%
37%
29%
24%
CARRIERMARKETSHARES
Market share of carrier billing in digital gaming (SuperdataResearch): 16% (3rd most popular payment method)
Price point Popularity % Price point Revenue %
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 69% of users have browser language set to Romanian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
69%
68%
TABLET
DESKTOP
MOBILE
27%
5%
TRAFFICSOURCES
Price point (in USD)
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$27.6
$11.4 25%
26%
% denotes YoY change1.25 1.26 3.76 3.79 6.26 6.31 12.52 12.63 12.85 25.71
25.4%
7.1%
29.2%
8.2%
8.7%
7.3%
8.8%
7.5%4.4%
6.2%
4.6%
6.5% 5.8%
16.2%
9%
25.4%
2.7%
7.6%
1.4%
7.9%
Market profile December 2016 - February 2017
Czech Republic
GNI per capita:Median age:
4211Population:
$18,00011Mobile users:
1 Czech Koruna (CZK) = $0.039
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
58%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
26%54%
Mobile broadband
access:
37%
Prepaid SIMmarket share:
Debit cardpenetration:
64%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Czech Republic
39%
36%
25%
CARRIERMARKETSHARES
Market share of carrier billing in digital gaming (SuperdataResearch): 21% (3rd most popular payment method)
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 92% of users have browser language set to Czech.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
92%
43%
TABLET
DESKTOP
MOBILE
52%
5%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$19.2
$5.8 37%
5%
% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
1.15 1.2 1.73 1.81 2.59 2.71 5.47 5.72 7.19 7.53
67.1%
41.6%
15.9%
10.1%
3.9%
4.8% 2.3%5.6%
0.7%1.7% 5.2%
16%
1.4%4.3%
2.2%
8.1%
0.5%2%
0.8%
5.6%
Market profile December 2016 - February 2017
Hungary
GNI per capita:Median age:
4210Population:
$13,00010Mobile users:
1 Hungarian Forint (HUF) = $0.0034
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
61%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
12%56%
Mobile broadband
access:
43%
Prepaid SIMmarket share:
Debit cardpenetration:
60%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Hungary
46%
31%
23%
CARRIERMARKETSHARES
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 96% of users have browser language set to Hungarian.
96%
84%
TABLET
DESKTOP
MOBILE
10%
6%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$13.5
$5.1
10%
% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
1.02 1.04 1.69 1.73 3.39 3.47 6.78 6.94
0.2%0.1%
0.1%0.1%
62.1%
39%
14.7%
9.5%4.1%5.2%
0.9%1.2%
14.7%
36.9%
3.1%
8.1%
(unchanged)
Market profile December 2016 - February 2017
Azerbaijan
GNI per capita:Median age:
3110Population:
$8,00010Mobile users:
1 Azerbaijan Manat (AZN) = $0.56
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
31%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
9%37%
Mobile broadband
access:
84%
Prepaid SIMmarket share:
Debit cardpenetration:
16%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Azerbaijan
55%
41%
7%
CARRIERMARKETSHARES
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 57% of users have browser language set to Russian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
57%
41%
TABLET
DESKTOP
MOBILE
52%
7%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$13.7
$6.3 24%
8%
% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
0.58 0.64 1.19 1.28 1.79 1.92 1.93 2.97 2.98 3.21
1.7%0.6%
0.5%0.2%
10.1%
7.7%
55.3%
45.2%
4.7%
5.4%
1.2%1.5%
17.9%
22%
0.1%0.3% 1%
1.8% 7.5%
15.3%
Market profile December 2016 - February 2017
Belarus
GNI per capita:Median age:
4010Population:
$7,00010Mobile users:
1 Belarussian Ruble (BYR) = $0.00005
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
59%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
14%42%
Mobile broadband
access:
53%
Prepaid SIMmarket share:
Debit cardpenetration:
40%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Belarus
47%
41%
11%
CARRIERMARKETSHARES
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 95% of users have browser language set to Russian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
95%
37%
TABLET
DESKTOP
MOBILE
60%
3%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$10.9
$6.7% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
1.22 1.27 1.52 1.58 1.71 1.78 1.83 1.9 2.2 2.29
4.7%3.1%
6.5%
4.4%
9.8%
8% 2.2%1.8%
11.6%
10.6% 3.6%
3.5%
18.5%
18.1%
5.3%
5.4%
30.8%
36.4%
7.1%8.8%
20%
26%
Market profile December 2016 - February 2017
Bulgaria
GNI per capita:Median age:
427Population:
$8,0007Mobile users:
1 Bulgarian Lev (BGN) = $0.54
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
53%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
12%43%
Mobile broadband
access:
22%
Prepaid SIMmarket share:
Debit cardpenetration:
56%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Bulgaria
45%
40%
15%
CARRIERMARKETSHARES
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 71% of users have browser language set to Bulgarian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
71%
30%
TABLET
DESKTOP
MOBILE
66%
4%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$12.3
$7.7 2%% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
1.27 1.3 2.53 2.6 3.16 3.25 5.27 7.91 10.54 10.81
18.1%
9.4% 4.2%2.2%
45.7%47.2%
11.8%
12.5%
15%
19.3%
4%
5.3%
0.4%0.8%
0.3%1%
0.5%2%
0.1%0.3%
18%
Market profile December 2016 - February 2017
Serbia
GNI per capita:Median age:
429Population:
$6,0009Mobile users:
1 Serbian Dinar (RSD) = $0.0085
million years Gross National Income (IMF 2014 estimate)
million
Currency:
Carrier billing in 2017: Central & Eastern Europe
51%
Smartphonepenetration (of all
mobile phones):Credit card
penetration:
15%44%
Mobile broadband
access:
49%
Prepaid SIMmarket share:
Debit cardpenetration:
58%
CARRIERS SUPPORTED BY FORTUMO
Carrier billing landscape December 2016 - February 2017
Serbia
53%
31%
16%
CARRIERMARKETSHARES
Carrier billing in 2017: Central & Eastern Europe
LOCALIZATION
Recommended, 57% of users have browser language set to Serbian.
Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo.
57%
31%
TABLET
DESKTOP
MOBILE
39%
30%
TRAFFICSOURCES
Quarterly average revenue per user:
Quarterly median revenue per user:
% denotes YoY change
$15.5
$8.1
14%
% denotes YoY change
Price point Popularity % Price point Revenue %
Price point (in USD)
1.5 1.53 2 2.04 3 3.06 5.79 5.91 7.99 8.15
30.8%
15.4%8.5%
4.3%
21.1%
14% 3.2%2.2%
12.7%
12.7%
3.5%
3.6% 6.5%
12.6%
1.8%3.5%
9.6%
25.5%
2.3%
6.3%
30%
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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 o�ces in Estonia, San Francisco, Beijing, Delhi, Singapore & Hanoi 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 di�erent assumptions could result in materially di�erent 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, direc-tors, 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 © 2017 Fortumo | All rights reserved.