Carrier billing in the Commonwealth of Independent States: 2016 market report by Fortumo

Carrier billing in 2016: Commonwealth of Independent States

Market report by Fortumo

IntroductionThis white paper gives an overview of the mobile payments landscape of CIS (Commonwealth of Independent States). It covers 7 markets where where Fortumo has coverage: Russia, CIS associate member Ukraine, Kazakhstan, Belarus, Azerbaijan, Moldova and Armenia.


https://en.wikipedia.org/wiki/Commonwealth_of_Independent_States

https://fortumo.com/coverage/


CIS is significantly different from both Europe and Asia in that Russian culture and language are the predominant ones in the region. This also extends to online content consumption: Yandex provides significant competition to Google while VK prevails over Facebook. Digital content merchants entering this region should keep this in mind both from a localization and user acquisition perspective.

Fortumo’s CIS market report gives a high-level overview of the biggest markets in the region as well as insights on user spending behavior, device preferences and the mobile operator ecosystem. Data presented in the white paper has been taken from Fortumo’s cross-platform mobile payment solution as well as external public sources of information.

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].

https://en.wikipedia.org/wiki/Yandex

https://en.wikipedia.org/wiki/VK_(social_networking)


RussiaMarket profile

Gross National Income (GNI)per capita (IMF 2014 estimate):

Median age:

38.9 years

42%

143 million

Smartphone penetration (of all mobile phones):

Population:

$13,000

248 million

Mobile broadband access:

Prepaid SIM market share:Credit & debit card penetration:

21% / 44%

41%

82%

Mobile phones in market:

Currency: 1 Russian Ruble (RUB) = $0.015 (exchange rate as of June 3rd, 2016)

Important note: The Russian ruble has significantly declined compared to USD.

https://en.wikipedia.org/wiki/VK_(social_networking)

Share of carrier billing in payment mix (SuperDataResearch): 22.3%

Carriers supported by Fortumo:

Payment types:

Localization:

RussiaCarrier billing in 2016: Commonwealth of Independent States

Carrier billing landscapeMarch 2016 - May 2016

Quarterly ARPPU: $11.7

one-off transactionssubscriptions (weekly and monthly billing)

MTS (34%) Beeline (25%) Megafon (24%) Tele2 (24%) Motiv (2%) Smarts (1%)

Average transaction size: $2

Traffic sources:

73% mobile

22% desktop

5% tablet Recommended, 83% of users have browser language set to Russian.

Transaction volume change (from March 2015 - May 2015): -28%

(2nd most popular payment method)


UkraineMarket profile


Median age:

40.6 years

58%

45 million


Population:

$4,000

62 million



27% / 39%

16%

91%


Currency: 1 Ukrainian Hryvna (UAH) = $0.04(exchange rate as of June 3rd, 2016)

Important note: The Ukrainian Hryvnia has significantly declined compared to USD.

http://www.bloomberg.com/quote/USDUAH:CUR

Share of carrier billing in payment mix (SuperDataResearch): 6.7%


Payment types:

Localization:

UkraineCarrier billing in 2016: Commonwealth of Independent States




Kyivstar (43%) Vodafone (35%) Life:) (21%) TriMob (1%)


Traffic sources:

51% mobile

38% desktop

11% tablet Recommended, 76% of users have browser language set to Russian and 14% to Ukrainian.

Transaction volume change (from March 2015 - May 2015): +20%

(4th most popular payment method)

Important note: Web-money services and services with political content are forbidden in Ukraine.


KazakhstanMarket profile


Median age:

29.7 years

30%

18 million


Population:

$12,000

28 million



11% / 32%

24%

89%


Currency: 1 Kazakhstani Tenge (KZT) = $0.003(exchange rate as of June 3rd, 2016)


Payment types:

Localization:

KazakhstanCarrier billing in 2016: Commonwealth of Independent States




Kcell (47%) Beeline (37%) Tele2 (13%) Altel (3%)

Average transaction size: $1.3

Traffic sources:

59% mobile

38% desktop




BelarusMarket profile


Median age:

40.6 years

10 millionPopulation:

$7,000

12 million


Prepaid SIM market share:

Credit & debit card penetration:

13% / 39%

42%

52%


Currency: 1 Belarussian Ruble (BYR) = $0.00005(exchange rate as of June 3rd, 2016)


Payment types:

Localization:

BelarusCarrier billing in 2016: Commonwealth of Independent States




MTS (47%) Velcom (41%) Life:) (11%)


Traffic sources:

37% mobile

60% desktop




AzerbaijanMarket profile


Median age:

30.1 years

60%

10 million


Population:

$8,000

9 million



8% / 15%

38%

84%


Currency: 1 Azerbaijani Manat (AZN) = $0.67(exchange rate as of June 3rd, 2016)


Payment types:

Localization:

AzerbaijanCarrier billing in 2016: Commonwealth of Independent States




Azercell (55%) Bakcell (35%) Nar Mobile (10%)


Traffic sources:

45% mobile

53% desktop




MoldovaMarket profile


Median age:

35.7 years

25%

4 million


Population:

$3,000

4 million



6% / 15%

54%

69%


Currency: 1 Moldovan Leu (MDL) = $0.05(exchange rate as of June 3rd, 2016)


Payment types:

Localization:

MoldovaCarrier billing in 2016: Commonwealth of Independent States




Orange (54%) MoldCell (30%) IDC (11%) Unite (5%)


Traffic sources:

25% mobile

69% desktop




ArmeniaMarket profile


Median age:

33.7 years

3 millionPopulation:

$4,000

3 million


Prepaid SIM market share:

Credit & debit card penetration:

5% / 8%

38%

79%


Currency: 1 Armenian Dram (AMD) = $0.0021(exchange rate as of June 3rd, 2016)


Payment types:

Localization:

ArmeniaCarrier billing in 2016: Commonwealth of Independent States




MTS (60%) Beeline (20%) Ucom (20%)


Traffic sources:

41% mobile

55% desktop



Additional reading

How 5 top digital merchants use localized pricing to boost revenueRead now

14 free resources for digital commerce and mobile payments researchRead now

How to integrate different payment methods into your checkout process?Read now

https://blog.fortumo.com/how-5-top-digital-merchants-use-localized-pricing-to-boost-revenue/

https://blog.fortumo.com/14-free-resources-for-digital-commerce-and-mobile-payments-research/

https://blog.fortumo.com/how-to-integrate-different-payment-methods-into-your-checkout-process/

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, 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 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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Carrier billing in the Commonwealth of Independent States: 2016 market report by Fortumo