Fortumo is a mobile payments company founded in 2007 that provides mobile operator billing in 75 countries. They have a team of 45 people across 5 offices in Europe, US and Asia. Their self-servicing platform focuses on emerging markets and the long tail of app developers. To increase revenues globally, they recommend focusing on emerging markets, using alternative payment methods like mobile operator billing, and alternative distribution channels beyond app stores. Mobile operator billing converts at higher rates than credit cards in many markets due to its ease of use.

1. Third Party In-App Payments!
Tarvo Topolev, Fortumo

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Fortumo!
Founded in 2007
Mobile operator billing in 75 countries
Offices in Europe (Estonia), US (San Francisco) and Asia (Beijing)
Team of 45 people in 5 countries
Self-servicing platform, long tail
Platforms: Web, Mobile Web, HTML 5, Android, Windows 8, Windows Phone

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Fortumo!

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The Smartphone Market Is Growing!
How do you monetize
in these highest
growing countries?

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Market Leaders Are Android And iOS!

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Will The New Ones Succeed?!

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App Store Revenue: iOS vs Google!

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Google Play Growing, Fast!

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Streams Of Revenue!
Mobile Payments Advertising Offerwalls

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Premium Or Freemium?!

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Premium Or Freemium?!
App stores are full of low quality apps More downloads
Cultural differences Target long tail (just like offers)
Weak and non effective billing solutions People are used with free apps
Free competitors Ability to adjust to different ability to pay
Limited distribution options Better global reach
Piracy More distribution options
Lower dependence from app stores
Piracy

13. Monetizing Freemium on Android!
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Top 3 Ways To Increase Revenues Globally!
Focus on emerging markets
Use alternative ways of payment
Use alternative distribution channels

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Going Global!
Around 65% of smartphones are sold in emerging markets,
almost 50% of smartphones in Asia-Pacific.

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Pricing Of In-App Payments!
Average size of in-app payment, aggregated data from 1 million
Android payments with Fortumo in January 2013:
Sweden 4.25€
Spain 3.9€
Germany 3.5€
United Kingdom 2.5€
Russia 2.4€
Brazil 1.5€
Mexico 1.4€

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Top 3 Ways To Increase Revenues Globally!
Focus on emerging markets
Use alternative ways of payment
Use alternative distribution channels

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Why Use 3rd Party Payment Options?
Emerging markets don’t monetize well with credit cards
Local solutions are not integrated
Some platforms already suggest using 3rd party
payment solution – as they don’t have their own solution
Conversion rates
More distribution options
Focusing into some markets

19. What are the alternatives?!
App store billing (Google Wallet etc.)
– mostly restricted to credit card users
Carrier billing (direct billing, premium SMS)
– good coverage and conversion rates, sometimes high carrier commissions
Credit cards (Visa, Mastercard)
– high payout but difficult checkout, kills conversion rate
PayPal
– works in limited number of the countries
Prepaid cards, kiosks and vouchers
– works well in selected Asian countries, but low conversion

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Why mobile operator billing?!
4.7 billion mobile phone users worldwide
– Only 1.3 billion credit card users
Less clicks, less hassle
– Leads to up to 10x better conversion than credit
cards
Best for selling virtual goods for <10USD
– In some countries, over 90% of such purchases
made by mobile
4

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Payment flow!
vs

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Offline payments!
Unique to carrier billing
27% of all mobile apps usages sessions
take place while there is no data
connection present
Does your payment provider support
offline?

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Top 3 Ways To Increase Android Revenues Globally!
Focus on emerging markets
Use alternative ways of payment
Use alternative distribution channels

24. App Stores!

25. App stores!
3rs party appstores: – T-Store (Korea) – Airtel AppCenter
– Opera Mobile App – 360 (China) – Telkomsel AppZone
Store – HiAPK (China)
– GetJar – Andronavi (Japan) OEM stores:
– Appia (Pocketgear) – Yandex store (Rus.) – Samsung Apps
– AndAppStore – Fasmicro App Store – ZTE Appstore
– Handango (Africa) – LG smartWorld
– OnlyAndroid – Shop4Apps
– Insyde Market (Motorola)
– Amazon App Store
– SlideME
– Appoke and many more..
– YAAM
Mobile operator stores:
– OrangeWorld
Regional stores:
– O2 Active

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App Monetization!
Start going global from emerging regions
+
Mobile Operator Billing
+
Many Distribution Channels
=

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Questions?!

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We’re Hiring!!
Senior Software Developer
QA Engineer
Front-End Developer
Mobile Developer
Integrations Manager
http://fortumo.com/careers

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Get In Touch!
Tarvo Topolev
tarvo.topolev@fortumo.com
http://fortumo.com