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80% of digital content payments over mobile phones in India: Fortumo report

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Over 80% of payments for digital content in India are from mobile devices, according to a report from payment operator Fortumo. The report added that a majority of content consumption in India still happens over feature phones, even though smartphone penetration in the country is rapidly growing.

The traffic source of completed payments from Fortumo’s data from January 2015 to June 2015, showed that mobile devices accounted 88.7%, followed by desktop devices (8.6%) and tablets (2.7%).

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It’s interesting to note that the report also said that the monthly average revenue per paying user (ARPPU) was the highest for Windows Phone users (Rs 216.46) with an average transaction size of Rs 87.5. For web users, the ARPPU was at Rs 86.9 and the average transaction size was Rs 50.8. For Android users, the ARPPU was Rs 60.8 and the average transaction size was Rs 35.4. ARPPU is calculated by dividing the total money spent by users with the number of unique users who made payments.

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Fortumo notes that a majority of digital content merchants are are increasingly adapting their pricing to match the income and spending behavior in India. This is bolstered by the fact that Google in August reduced the minimum purchase price for apps on Google Play in India to Rs 10. This came a fortnight after Apple introduced its new pricing tiers for India, that let developers charge Rs 10 for their apps.

Prior to this development, the minimum purchase price for apps on Google Play was Rs 50, or ~$1, as it is for every other country. India is the first country where the lower pricing tier has been introduced. Apple started differential pricing with the Chinese app store, followed by other countries including India.

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It’s also interesting to note that earlier this month Google also rolled out physical Google Play Gift Cards in retail outlets including Spice Hotspot, Vijay Sales, Planet M, Planet Mobile and Sangeetha Mobile across India. The cards will also be available on Snapdeal and can be paid by cash on delivery. Currently the gift cards are available in denominations of Rs 750, Rs 1,000 and Rs 1,500. The Play store card is redeemable in the Play store for any apps, movies, books and games etc.

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