December 10, 2013
The Indonesian digital goods market is estimated to reach $244 Mn in 2013. Of this, lower than 10% of payments are made with credit cards. Indonesia has an estimated 57 Mn smartphone owners, a number which has doubled since 2012 according to businesswire. Fortumo, announced the launch of its mobile operator billing in Indonesia on 10th December 2013, to tap into this market.
Fortumo was launched in 2007, aiming to be the most developer friendly mobile payments provider. Mobi Solutions a specialist in SMS based service provider owned major stake in Fortumo when the service was launched. Back in February, 2013 Fortumo raised $10 Mn from Intel Capital and Greycroft Partners to foray into emerging markets, according to Techcrunch.
What does the launch mean for users in Indonesia?
Indonesia is the 4th largest country in the world by Population. Recently, Fortumo has made similar announcements with the launch of its mobile operator billing in India, the second largest country by population. The company had also rolled out a new program called Fortumo Expand on October 24, 2013. The launch of this program was to help Chinese app developers to make money overseas by selling their apps.
This foray into South East Asian markets might be based on their in-app payments data. According to the data, the monthly average revenue per paying user (ARPPU$14.5 in Thailand, $13.2 in Malaysia & ) is $19.6 in Taiwan. Whereas this figure is much lower in Wester Markets with ARPPU at $11.2 for the U.K, $10.6 for Germany & $6.9 in the U.S.
Globally, Fortumo has presence in over 180 countries and has tie ups with over 300 carriers and 92,000 developers. Some of the popular app or game developers who use Fortumo’s direct carrier billing service include Pop Cap Games, Rovio (Angry Birds app maker), EA, Gameloft, Badoo, etc. According to Fortumo, the worldwide gross transaction volumes for mobile payments for digital goods are estimated to reach $268 Bn by 2015.