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Mobile Payments in Central & Eastern EuropeWhite paper by Fortumo
Introduction
Mobile Payments in Central & Eastern Europe
These countries combined are almost equal to the US in terms of population but often fly under the radar of web and mobile developers. Since most users in this region do not have access to traditional payment methods (i.e. credit cards) to make payments online, Central & Eastern Europe has significantly higher piracy rates than the global average. Therefore one of the key ways to unlock revenue from this region is to provide users with a payment method that is accessible to a majority of the population.
Fortumo’s Central & Eastern European white paper gives a high-level overview of the biggest markets in the region as well as insights on user spending behaviour, device preferences and local distribution & payment channels. Data presented in the white paper has been taken from Fortumo’s cross-platform mobile payment solution and Android in-app purchasing SDK as well as external public sources of information.
Markets Overview
Phone penetration
Credit card penetration
Russia 155% 17%
Ukraine 126% 66%
Population
146M
43M
Poland 123% 17%
Romania 108% 11%
38M
20M
Czech Republic 136% 21%
Hungary 116% 13%
10M
10M
Azerbaijan 78% 3%
Belarus 109% 61%
10M
9M
GDP per capita ($)
Digital gaming spend (2014)
Average ageCountry
Bulgaria 140% 14%
Serbia 139% 8%
24,298
8,651
23,273
17,440
27,347
23,236
17,028
17,623
16,518
12,465
$1180M
$68M
$311M
N/A
$147M
$100M
N/A
N/A
N/A
N/A
7M
7M
38.5
39.7
38.2
38.1
40.4
41.3
28.5
38.8
41.6
41.1
This white paper gives an overview of the mobile payments landscape in Central & Eastern Europe. It covers 10 of the biggest countries in the region by population: Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia.
User Spending Behaviour in Central & Eastern Europe
1,79
1,29
3,72
2,5
3,5
3,61
4,41
2,47
2,98
2,69
3,02Russia
Ukraine
Poland
Romania
Czech Republic
Hungary
Azerbaijan
Belarus
Bulgaria
Serbia
2,21
1,41
3,73
3,32
2,62
3,86
3,92
2,4
2,78
2,82
Russia
Ukraine
Poland
Romania
Czech Republic
Hungary
Azerbaijan
Belarus
Bulgaria
Serbia
Monthly ARPPU (USD)Avg transaction (USD)
Web Payments(6 months average, September 2014 - February 2015)
In-App Payments(6 months average, September 2014 - February 2015)
2,73
6,05
5,51
5,96
6,62
10,14
6,75
8,01
5,8
4,14
2,97
6,84
7,27
5,8
7,61
9,39
6,15
7,04
5,07
Monthly ARPPU (USD)Avg transaction (USD)
Mobile Payments in Central & Eastern Europe
Platform Preference in Central & Eastern Europe
Unlike other emerging regions where users often get their first access to the internet through a smartphone, CEE has a high penetration of traditional devices for internet access. This is also illustrated in their spending behaviour as a significant portion of payments processed through the Fortumo platform are from users on desktop devices.
Desktop TabletMobileCountry
8.44%
9.01%
6.51%
2.95%
11.58%
7.13%
5.63%
3.20%
3.00%
19.78%
33.01%
37.34%
69.17%
26.24%
64.40%
64.52%
54.37%
60.12%
24.98%
36.67%
58.55%
53.65%
23.42%
70.81%
24.02%
28.34%
40.00%
36.68%
72.02%
43.55%
Russia
Ukraine
Poland
Romania
Czech Republic
Hungary
Azerbaijan
Belarus
Bulgaria
Serbia
Mobile Payments in Central & Eastern Europe
Language & Localization in Central & Eastern EuropeIf the user understands English enough to navigate their phone or payment window, they will most likely be able to also understand your service, game or app. Keep in mind that the language used needs to be understandable even for users who don’t speak the language: using simple terms such as “Store” and “Buy” helps with this. It’s also a good idea to visualize the main functions related to purchasing (e.g. a shopping cart icon for your in-game store).
In terms of localization, Russian is the most popular second language in most of the countries covered in this white paper. If there is no capability available to translate your service or game into all local language, effort should at least be made to have Russian as an alternative language option available in addition to English. Regional Russian-language social networks are also popular in the region so you should consider integration of platforms like Odnoklassniki, My World and VKontakte.
Mobile Payments in Central & Eastern Europe
Browser language: web payments(6 months average, September 2014 - February 2015)
Device language: in-app payments(6 months average, September 2014 - February 2015)
Russia
94% Russian
5% English
1% other
Ukraine
86% Russian
9% Ukrainian
5% other
Poland
94% Polish
4% English
2% other
Romania
58% Romanian
37% English
5% other
Czech Republic
86% Czech
10% English
4% other
Hungary
88% Hungarian
10% English
2% other
Azerbaijan
56% Russian
19% Azerbaijan
8% Turkish
7% English
10% other
Belarus
96% Russian
2% English
2% other
Bulgaria
79% Bulgarian
17% English
4% other
Serbia
50% Serbian
39% English
3% Croatian
8% other
Russia
98% Russian
2% other
Ukraine
71% Russian
12% Ukrainian
7% English
10% other
Poland
96% Polish
4% other
Romania
84% Romanian
9% English
7% other
Czech Republic
95% Czech
5% other
Hungary
97% Hungarian
3% other
Azerbaijan
50% Russian
32% Turkish
9% Azerbaijani
9% other
Belarus
93% Russian
7% other
Bulgaria
83% Bulgarian
11% English
6% other
Serbia
80% Serbian
16% English
4% other
Testing your appTest your app! There are over 18 thousand Android devices out there but you don’t need to cover all of them: testing your app on a few very different (screen size & hardware specs) will improve chances of as many users as possible being able to play it. Cutting off a portion of users for using an older version of the OS or a device with a smaller screen could have a big impact on revenue - especially in emerging markets like Central & Eastern Europe.
Jelly Bean 48%(4.1–4.3.1)
KitKat 38,50%(4.4–4.4.4)
Gingerbread 5,7%(2.3–2.3.7)
Ice Cream Sandwich 4,7%(4.0–4.0.4)
Lollipop 3,1%(5.0–5.0.2)
Android OS versions & screen sizes in the CEE region:
26,2% - 800x480
13,8% - 1920x1080
13,5% - 1280x720 8,4% - 960x540
7,1% - 854x480
31% - Others
Screensizes
Mobile Payments in Central & Eastern Europe
Most popular brands:
Galaxy S4, Galaxy S5, Galaxy S III, Galaxy Trend Plus, Galaxy SII, Galaxy S III Mini, Galaxy S4 Mini, Galaxy S3 Neo, Sony Xperia Z1, Sony Xperia M2
Most popular devices:
Alternative Payments & Distributionin Central & Eastern Europe
While almost everyone in the U.S. has a credit card, a number of issues prevent the spread of credit cards in growing economies (identity and reputation management, debt enforcement, informal economies), and they’re not going to be solved anytime soon. Instead, people rely on alternative payment methods to conduct transactions online.
In addition to carrier billing with Fortumo, integration of alternative payment methods can be considered for users in the Central & Eastern European region:
For Android apps, it’s also important to consider alternative distribution channels beside Google Play. Many Android smartphone owners in the Central & Eastern European region download apps from these alternative Android app stores:
Mobogeniehttp://www.mobogenie.com http://content.samsung.com
Samsung Galaxy Appshttp://slideme.org
SlideMEYandex Storehttp://store.yandex.com
Opera Mobile Storehttp://apps.opera.com
QIWIhttps://qiwi.ru
WebMoneyhttp://www.wmtransfer.com
PaysafeCardhttps://www.paysafecard.com
Przelewy24http://www.przelewy24.pl
PayUhttp://www.en.payu.pl
Kyivstar App Clubhttp://appclub.com.ua
Yandex Moneyhttps://money.yandex.ru
[email protected]://twitter.com/fortumohttps://facebook.com/fortumo
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 88 countries through 350 mobile operators. Founded in 2007, Fortumo has offices in Estonia, US, India, China and Singapore and is backed by Intel Capital and Greycroft Partners. Get started with mobile payments at https://fortumo.com.
About Fortumo