carrier billing in the nordics 2015 market report by fortumo
DESCRIPTION
Mobile payments are in the Nordics and rest of Europe due to 2 reasons. First, it provides a more user-friendly second flow. With bank-based payments, users have to complete detailed forms and share personal information. Meanwhile, they can complete carrier billing purchases in one click. Second, the billing technology in this region is modern. This means support for flexible pricing, high price points and subscriptions. Data for this report includes information from public channels and our cross-platform payments solution.TRANSCRIPT
Carrier billing in the Nordics:2015 market report by Fortumo
IntroductionWhile mature economies with relatively strong bank infrastructure, direct carrier billing is still a popular payment method in the region (being among the top 3 payment methods for online gaming purchases in all of the countries). The reason for direct carrier billing’s success in the Nordics and rest of Europe is due to a significantly more user-friendly checkout flow, and advanced carrier technology (pricing flexibility, high price points and subscriptions). Unlike with bank cards where users have to complete detailed forms and share personal information, carrier billing payments are completed conveniently through a 1-click payment.
Data in this market report has been gathered from public sources and Fortumo’s internal payments data from our cross-platform mobile payments solution. In this report, you will find an overview of:
This market report gives an overview of the carrier billing landscape in 4 Nordic countries: Denmark, Finland, Norway and Sweden.
Access to payments: comparison of credit card, debit card, mobile and smartphone penetrationPayment behavior (average revenue per paying user and average transaction sizes) in each marketDevices and languages used by paying usersOverview of the mobile operators market share and payment types
Andrea BoettiVP of Global Business Development & SalesFortumo
Mattias LiivakHead of Marketing & PRFortumo
If you have any questions about the data in this report, please reach out to us at [email protected].
Carrier billing in the Nordics
DenmarkMarket profile
Population: 5.7 million
GDP per capita(IMF 2014 estimate):
$44,625
Median age: 41.6 years
Debit card penetration:
Credit card penetration:
Carrier billing in the Nordics
93.9%
15-24 age group
95.9%
25+ age group
34% 36.9%
15-24 age group 25+ age group
Smartphone penetration:
81%
Carrier billing landscape
Share of carrier billing in payment mix: 18.3% (3rd most popular after credit/debit cards and pre-paid vouchers)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Important note: Danish consumers have a full right to request a refund 15 days after making a purchase using carrier billing.
Carrier billing in the Nordics
DenmarkCarrier billing landscapeMay 2015 - October 2015
Monthly ARPPU: $6.31Average transaction size: $3.88
one-off transactionssubscriptions (weekly and monthly billing)
recommended, 84.1% of paying users have browser locale set to Danish
TDC (45%) Telenor (30%) Telia (19%) Tre (6%)
54.05% mobile 38.2% desktop
7.75% tablet
FinlandMarket profile
Carrier billing in the Nordics
Smartphone penetration:
68%
Population: 5.5 million
GDP per capita(IMF 2014 estimate):
$40,661
Median age: 43.2 years
Debit card penetration:
Credit card penetration:
98.2%
15-24 age group
96.5%
25+ age group
26.6% 67%
15-24 age group 25+ age group
Share of carrier billing in payment mix: 21% (2nd most popular payment method after credit/debit cards)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Carrier billing in the Nordics
FinlandCarrier billing landscapeMay 2015 - October 2015
Monthly ARPPU: $5.92Average transaction size: $3.88
one-off transactionssubscriptions (weekly and monthly billing)
recommended, 80.7% of paying users havebrowser locale set to Finnish
Sonera (42%) Elisa (37%) DNA (21%) Saunalahti, Alcom
78.77% mobile 16.82% desktop
4.4% tablet
NorwayMarket profile
Carrier billing in the Nordics
Smartphone penetration:
70%
Population: 5.2 million
GDP per capita(IMF 2014 estimate):
$67,166
Median age: 39.1 years
Debit card penetration:
Credit card penetration:
97.8%
15-24 age group
98.8%
25+ age group
25% 76.2%
15-24 age group 25+ age group
Share of carrier billing in payment mix: 18.3% (3rd most popular after credit/debit cards and pre-paid vouchers)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Carrier billing in the Nordics
NorwayCarrier billing landscapeMay 2015 - October 2015
Monthly ARPPU: $6.31Average transaction size: $3.88
one-off transactionssubscriptions
recommended, 53.9% of paying users have browser locale set to Norway
Telenor (51%) NetCom (27%) Tele2 (10%)Network
Norway (9%)
60.1% mobile 31.77% desktop
8.13% tablet
SwedenMarket profile
Carrier billing in the Nordics
Smartphone penetration:
83%
Population: 9.3 million
GDP per capita(IMF 2014 estimate):
$46,219
Median age: 41.2 years
Debit card penetration:
Credit card penetration:
96.9%
15-24 age group
97.8%
25+ age group
16.2% 52.8%
15-24 age group 25+ age group
SwedenCarrier billing landscapeMay 2015 - October 2015
Share of carrier billing in payment mix: 18.3% (3rd most popular after credit/debit cards and pre-paid vouchers)
Carriers in market:
Payment types:
Localization:
Traffic sources:
Important note: Consumers in Sweden need to set up an account with WyWallet before they are able to make carrier billing transactions.
Carrier billing in the Nordics
Monthly ARPPU: $6.31Average transaction size: $3.88
one-off transactionssubscriptions (weekly billing)
recommended, 70.1% of paying users have browser locale set to Swedish
Telia (45%) Tele2 (26%) Telenor (17%) Tre (11%) TDC (11%)
72.35% mobile 18.63% desktop
9.02% tablet
Additional readingCarrier billing in Central & Eastern Europe: free white paper by Fortumo
How to avoid cannibalization between online payment methods – white paper by Fortumo
How is fraud prevented with carrier billing?
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Fortumo allows any merchant to set up payment processing for web and mobile services, games or apps. Users with a mobile phone are then able to make one-click payments using Fortumo without the need for a credit card: payments are charged to their mobile operator bill instead. Fortumo supports payments in more than 90 countries through 350 mobile operators. 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. Get started with mobile payments at https://fortumo.com. Read now
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