In both Thailand and Indonesia, credit card ownership remains below 10% while more than 65% of the population already have smartphones. This means most consumers can access online entertainment but do not have a way to pay for premium content. Carrier billing solves this issue for digital service providers by giving any mobile phone owner the option to make online purchases and deduct the charges from their mobile account balance.
Spotify launched direct carrier billing with the new telcos through Fortumo’s Payments API which gives the streaming firm full control of the checkout flow and access to advanced features of carrier billing such as token-based authentication, dynamic pricing and an automated refunding process.
Fortumo’s platform is used by Google Play, Spotify, iflix, Sony, HOOQ, Tencent, EA Mobile, Gameloft, Kinguin, EasyPark, Schibsted and thousands of other merchants. One integration with the platform enables merchants to collect payments from subscribers of more than 350 mobile operators.
Local payment options are crucial for companies looking to grow their user base and revenue internationally. Carrier billing is one of the most popular alternative payment methods in Asia, matches well with the mobile-only audience and opens up additional opportunities with telcos for co-marketing and bundling.
Andrea Boetti, Vice President of Global Business Development at Fortumo
Patrik Falk, Head of Direct Subscriptions for Spotify at Asia Pacific