Emerging Markets

Payment Index: Q4 2015

Report by Fortumo

Introduction
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.

Emerging Markets Payment Index: Q4 2015

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.

Emerging Markets Payment Index: Q4 2015

India
Population:

1237 million

Median age:

25.9

GDP per capita:

$5,855

Phone penetration:

70.3%

Credit & debit

card penetration:

2% / 8%

World Bank, 2011

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$2.9
Q3 15:

Carrier billing average payment size

$0.6
Q3 15:

Q4 15:

Q4 15:

$3.7

Carrier billing ARPPU

change QoQ:

+27.6%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

$0.9

Carrier billing payment

size change QoQ:

+50%
+16.7%

* - 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.

Emerging Markets Payment Index: Q4 2015

Pakistan
Population:

182 million

Median age:

21.2

GDP per capita:

$4,736

Phone penetration:

71.6%

Credit & debit

card penetration:

1% / 3%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$2.7
Q3 15:

Carrier billing average payment size

$0.5
Q3 15:

Q4 15:

Q4 15:

$4.8

Carrier billing ARPPU

change QoQ:

+77.8%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$0.8

Carrier billing payment

size change QoQ:

+60%
-10.7%

Indonesia
Population:

237 million

Median age:

27.9

GDP per capita:

$10,641

Phone penetration:

99.3%

Credit & debit

card penetration:

0% / 11%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$6.1
Q3 15:

Carrier billing average payment size

$0.8
Q3 15:

Q4 15:

Q4 15:

$5.7

Carrier billing ARPPU

change QoQ:

-6.6%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$0.7

Carrier billing payment

size change QoQ:

-12.5%
+2.3%

Vietnam
Population:

90 million

Median age:

27.4

GDP per capita:

$5,635

Phone penetration:

72.3%

Credit & debit

card penetration:

1% / 15%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$3.1
Q3 15:

Carrier billing average payment size

$0.5
Q3 15:

Q4 15:

Q4 15:

$2.6

Carrier billing ARPPU

change QoQ:

-16.1%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$0.4

Carrier billing payment

size change QoQ:

-20%
-13.2%

Brazil
Population:

201 million

Median age:

GDP per capita:

30.5

$16,096

Phone penetration:

130.0%

Credit & debit

card penetration:

29% / 41%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$13.3
Q3 15:

Carrier billing average payment size

$1.6
Q3 15:

Q4 15: $10.5

Carrier billing ARPPU

change QoQ:

Q4 15:

-21%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$1.3

Carrier billing payment

size change QoQ:

-18.8%
-8.9%

Nigeria
Population:

173 million

Median age:

19.1

GDP per capita:

$6,031

Phone penetration:

65.7%

Credit & debit

card penetration:

1% / 19%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$2.7
Q3 15:

Carrier billing average payment size

$0.4
Q3 15:

Q4 15:

Q4 15:

$2.8

Carrier billing ARPPU

change QoQ:

+3.7%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$0.4

Carrier billing payment

size change QoQ:

0%
-11.9%

Egypt
Population:

83 million

Median age:

GDP per capita:

24.0

$10,877

Phone penetration:

91.4%

Credit & debit

card penetration:

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$4
Q3 15:

Carrier billing average payment size

$0.5
Q3 15:

Q4 15:

Q4 15:

$4

Carrier billing ARPPU

change QoQ:

Transaction Volume Change

0%

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

1% / 5%

$0.4

Carrier billing payment

size change QoQ:

-20%
+3.6%

South Africa
Population:

52 million

Median age:

24.7

GDP per capita:

$13,046

Phone penetration:

112.5%

Credit & debit

card penetration:

8% / 45%

Quarterly ARPPU

Average Payment Size

Carrier billing ARPPU

$11.9
Q3 15:

Carrier billing average payment size

$2.2
Q3 15:

Q4 15: $10.6

Carrier billing ARPPU

change QoQ:

Q4 15:

-10.9%

Transaction Volume Change

Carrier billing transaction volume change QoQ:

Emerging Markets Payment Index: Q4 2015

$1.9

Carrier billing payment

size change QoQ:

-13.6%
+3.9%

Additional reading
Will Visa, Paypal and Digital
Wallets Become Customers of
Mobile Operators in 2016?
Read now

Carriers Look to OTT,

Apps to Offset Losses
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market report by Fortumo
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Fortumo is a mobile payments company that enables direct carrier billing with more than 350 mobile operators in
90+ countries to over 130,000 merchants. 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. For more information, please visit https://fortumo.com.
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