Mobile technology company Fortumo has launched direct carrier billing and SMS messaging in Sweden. More than nine million subscribers of Telia, Tele2, Telenor and Tre can now make payments for digital content including app stores, streaming services and games by charging purchases to their mobile account.
In the past, merchants had to use the local master aggregator WyWallet for carrier billing which closed at the end of May. Fortumo integrated and launched directly with the Swedish telcos in less than a month to avoid downtime for merchants.
In addition to Sweden, carrier billing through Fortumo is available in over 100 countries.
While most Swedish consumers have a credit card, carrier billing is often preferred for digital content payments thanks to its simplicity and security. Users do not need to create or log into any accounts, nor do they need to share personal information online. Payments are completed in a few clicks and only the user’s phone number is processed.
Fortumo’s latest deal means that carrier billing has a market share of 13.6% in Western Europe (with bank cards at 27.5% and digital wallets at 26.9%) for digital content payments, according to SuperData Research.
In highly saturated and competitive markets like Sweden, digital merchants need every edge they can get over their competition. From a payments perspective, carrier billing provides this advantage as it simplifies user onboarding and boosts conversion compared to traditional payment methods. We are excited to be working with our merchant partners and the Swedish telcos in growing their revenue and delivering high-value services to consumers.