One of the key themes to emerge from World Telemedia Marbella was the issue of user acquisition (UA). Led by Tony Pearce from gaming company Reality+, a coterie of speakers and delegates voiced their concerns over how UA is now high cost and low return. So what can be done about it?
In the rapidly growing digital landscape, games and content companies are locked in a fierce competition to acquire new users. From mobile games to streaming platforms, the challenge lies not only in attracting users, but also in retaining them in a saturated market.
While the global digital economy presents immense opportunities, it also comes with a host of challenges: skyrocketing acquisition costs, platform saturation, privacy regulations and changing consumer behaviour.
The sheer volume of games and content platforms has exploded in recent years. As of 2024, more than 3.6 million apps are available on Google Play, while the Apple App Store boasts some 1.6 million. This creates a crowded marketplace where companies
The Middle East has become one of the key growth areas for telemedia, with the overall media and entertainment market valued at in excess of US$41.13bn and expected to hit nearly US$60bn by 2029. Ahead of World Telemedia Dubai on 11-13 May 2025, we drill down into what makes the market tick and where the opportunities lie.
User acquisition
must spend heavily to stand out, especially with the increased sophistication of paid advertising algorithms that favour those with deep pockets.
Moreover, platforms such as Netflix, Disney+ and Amazon Prime Video now compete not only with each other, but also with niche streaming services like Crunchyroll (anime) and Shudder (horror) and every VAS and content provider in the telemedia community.
Similarly, mobile game studios vie against not just indie developers, but also gaming giants such as Tencent and Activision Blizzard. The intense competition inflates the cost of advertising as more brands bid for the same ad space.
THE PRICE OF TARGETING
One answer is to leverage the targeting that data and AI bring. However, sophisticated user targeting is both a blessing and a curse. While advanced algorithms on platforms like Google Ads and Meta allow for precise targeting based on user demographics, behaviours and interests, this precision comes with higher costs. Targeting highvalue users, such as those likely to make in-app purchases or subscribe to premium content, requires bidding more in competitive auctions.
The shift to digital advertising has made paid acquisition almost unavoidable. Organic reach, once a cornerstone of growth, has diminished due to platform algorithm changes.
On social media, for example, organic posts from businesses
reach fewer than 5% of their followers on average. This forces companies to rely on paid media campaigns, significantly increasing their costs.
Global digital ad spending is expected to surpass $700 billion by 2024, up from $565 billion in 2022. This rapid growth has caused an inflationary effect in the ad market, further driving up user acquisition costs. Privacy regulations, such as GDPR in Europe and CCPA in California, as well as Apple’s App Tracking Transparency (ATT) framework, have limited companies’ ability to track user behaviour. This makes targeting new users harder and less efficient, increasing the cost of campaigns. After Apple introduced ATT in 2021, the cost per install for mobile games increased by up to 30%.
OTHER CHALLENGES ABOUND
Beyond the cost implications, there are several other chal-
lenges that games and content companies face in user acquisition.
The average digital consumer has an attention span of only eight seconds, making it difficult for brands to capture and retain their interest. Games and content companies must deliver compelling messaging almost instantaneously, which often requires costly high-quality creative assets and video campaigns.
App stores and distribution platforms such as Google Play, the App Store, and Steam take significant cuts of revenue — up to 30% — making it harder for companies to allocate resources to acquisition. Additionally, these platforms control discoverability, often favouring established players.
Expanding into global markets introduces the need for effective localisation. Beyond simple translation, companies must adapt their offerings to fit local cultures, preferences, and regulatory environments. For example, certain content in games may need to be censored in China, or subscription pricing may need to be adjusted for emerging markets.
The focus on acquiring new users often comes at the expense of retention strategies. Yet, research shows that acquiring a new user costs five times more than retaining an existing one. Without effective retention mechanisms, the lifetime value (LTV) of acquired users may not justify the high acquisition costs.
Modern users expect seamless experiences. A poorly optimized onboarding process, long loading times, or lack of personalization can result in high drop-off rates. For instance, mobile games with tutorials longer than 90 seconds lose up to 40% of users before they even start playing.
WHAT CAN BE DONE ABOUT IT?
While the challenges are daunting, there are several strategies that companies can adopt to tackle user acquisition issues. Companies can reduce their reliance on paid ads by focusing on organic growth strategies. This includes:
• Search engine optimization (SEO): Building content-rich websites or blogs that rank highly on search engines.
• Social media virality: Leveraging platforms like TikTok or YouTube to create shareable, entertaining content. For example, Among Us gained massive popularity in 2020 through viral YouTube and Twitch streams.
• Community building: Engaging with users on forums like Reddit, Discord, or even in-game communities.
Improving retention can reduce churn and boost lifetime value. Strategies include:
• Personalised experiences: Using AI to recommend content or gameplay tailored to user preferences.
• Reward systems: Loyalty programs, daily rewards, and special events incentivize continued use.
• Feedback loops: Listening to user feedback and implementing changes promptly.
Influencers, particularly
User acquisition
those on platforms like Twitch, YouTube, and TikTok, can provide highly targeted exposure. This is often more cost-effective than traditional paid ads. For example, Fortnite collaborated with celebrities and influencers to drive massive engagement without relying solely on traditional advertising.
Reducing friction in the onboarding process can significantly improve retention. Some best practices include:
• Shorter, engaging tutorials for games.
• Seamless payment and subscription processes for content platforms.
• Clear value propositions during sign-up.
Emerging platforms like TikTok Ads, Reddit Ads, and influencer networks often have lower costs per click (CPC) and less competition than giants like Google and
Meta. For example, TikTok’s algorithm-driven content discovery can make campaigns highly effective and cost-efficient. Targeting regions with lower competition and acquisition costs can be a winning strategy. For instance, mobile gaming companies have found success in India, Southeast Asia, and Latin America, where smartphone penetration is rising rapidly. Offering regional pricing or culturally relevant content helps capture these markets.
THE FUTURE OF USER ACQUISITION
As technology evolves, so too will user acquisition strategies. Here are some trends likely to shape the future: AI-driven campaigns: Advanced AI will enable hyperpersonalized ad targeting and dynamic creative optimisation, improving ROI on ad spend. Metaverse marketing: The
rise of the metaverse presents opportunities for immersive, experiential marketing. Games and content companies can use virtual worlds to host branded events, create interactive advertisements, and engage users in entirely new ways. For instance, Roblox has partnered with brands like Gucci and Nike to create virtual experiences, drawing millions of users while driving organic buzz.
Blockchain and play-to-earn models: Blockchain-based games, particularly those using play-to-earn (P2E) mechanics, offer a unique user acquisition model. By incentivizing users with cryptocurrencies or NFTs, these games attract players motivated by both entertainment and financial gain.
Axie Infinity is a prime example, having gained a massive user base in developing countries like the Philippines during the pandemic by offering income-
Examples of clever user acquisition strategies
Several companies have managed to overcome acquisition challenges through innovative approaches. So what is the practice of the best?
Epic Games’ Fortnite’s cross-promotion and events – Epic Games transformed Fortnite into a cultural phenomenon through cross-promotions and live events. For example:
Partnering with franchises like Star Wars and Marvel brought in fans from outside the gaming world.
Hosting in-game concerts with artists like Travis Scott and Ariana Grande attracted millions of viewers and created viral buzz.
These strategies helped Fortnite acquire users organically while reducing its reliance on traditional paid advertising.
Netflix’s global content strategy – Netflix’s user acquisition success lies in its localized content strategy. By investing in regional productions like Money Heist (Spain), Squid Game (South Korea), and Sacred Games (India), the company captured global audiences and drove organic subscriptions. This focus on cultural relevance allowed Netflix to grow in markets where American-centric content struggled.
Pokémon Go: leveraging augmented reality and nostalgia – Niantic’s Pokémon Go achieved
unprecedented success by blending augmented reality with nostalgia for the Pokémon franchise. Partnerships with real-world businesses – such as sponsored PokéStops – provided additional revenue streams and localized marketing opportunities, reducing reliance on costly user acquisition campaigns.
Genshin Impact: leveraging social media and word of mouth – Chinese game developer miHoYo used an aggressive pre-launch campaign for Genshin Impact, leveraging social media and influencer partnerships. Its free-to-play model, combined with high-quality graphics and engaging gameplay, generated significant word-of-mouth buzz.
Within six months of launch, the game had earned $1 billion in revenue, largely through organic growth.
Spotify: freemium model and data-driven personalisation – Spotify’s freemium model allows users to experience the platform for free while being nudged toward premium subscriptions. Features like Discover Weekly, which uses AI to curate personalized playlists, keep users engaged and increase conversions.
This data-driven personalisation strategy ensures high retention rates, which reduces the need for constant new user acquisition.
generating opportunities. Zero-party data strategies: As privacy regulations tighten, companies will increasingly rely on zero-party data—information that users willingly share in exchange for value. Interactive quizzes, surveys, or personalized experiences can help games and content companies gather data ethically while improving user acquisition targeting.
Gamification beyond gaming: Content companies can adopt gamification elements to drive engagement and acquisition. For example, Duolingo uses daily streaks, leaderboards, and rewards to keep users motivated, effectively blending entertainment and education to acquire and retain users at low costs.
WHAT DOES IT ALL MEAN?
User acquisition for games and content companies is a complex, high-stakes challenge. Rising costs, increased competition, privacy regulations, and shifting consumer behaviors make traditional methods of acquiring users less effective and more expensive. Companies must adapt by diversifying their strategies, investing in retention, and leveraging innovative approaches.
From Epic Games’ cultural crossovers to Spotify’s freemium model and Netflix’s localized content, success stories demonstrate that creativity and adaptation can overcome the barriers of user acquisition. Moving forward, emerging technologies like AI, blockchain, and the metaverse will open new doors for engagement and growth.
Ultimately, the key to sustainable success lies not just in acquiring users but in building meaningful, long-lasting relationships with them. By focusing on delivering value, creating personalized experiences, and staying ahead of industry trends, games and content companies can navigate the challenges of user acquisition and thrive in an ever-evolving digital world.
THE BIG GUY Paul Skeldon
paul@telemedia-news.com
ART DIRECTOR Victoria Wren
victoria@wr3n.com
CONTRIBUTORS & CONSULTANTS
SALES & MARKETING info@Telemedia-news.com
PRODUCTION
FROM THE EDITOR
A world of possibilities in a sea of political weirdness
Politics: never quite does what you expect, does it? The re-election of Donald Trump came as a surprise – though through the lens of hindsight, it shouldn’t have been – and his tenure as POTUS 49, still to commence at the time of writing, looks set to be a stormy one, not least for business.
I won’t try and work out what it might mean for the telemedia industry at this stage, but what is worth pointing out is that, while the US, Europe and the UK all flounder under a generational shift in political leadership/confusion, from a business perspective, other parts of the world – those often and offensively deemed to be ‘developing’ – are surging ahead.
This end of 2024 issue of Telemedia magazine is focussed
on two themes: on how established services can acquire users without breaking the bank in the ultra competitive and saturated ‘developed’ markets (see page 1 and page 8); and, more pertinently, on the new – new tech, new services and new markets (all the other pages).
With World Telemedia Dubai scheduled for May 2025, we take a deep look at MENA (see page 1). This market is buzzing with innovation, new services and new opportunities. We take a look at what that means for the sector and just how content, marketing, payments and tech are all driving some key innovations.
But the world doesn’t stop there. Sub-Saharan Africa – the bits that aren’t the NA in MENA – is also poised for growth. It is an underdeveloped mar-
ket, but one ripe with possibilities and something that needs to be explored. It will, IMHO, be the next big thing (see page 12).
Which brings us to the current ‘big thing’: India. This massive market isn’t talked about enough and, as we show, has huge potential for growth, even though it is already a massive market (see page 10).
Together, these emerging/ evolving markets are going to be the life blood of telemedia in 2025 – among other things (see page 13) – and offer a relative level of calm and stability as we approach a year that is going to be, to put it mildly, “interesting”.
telemediaonline.co.uk @telemediaTweets
Paul Skeldon. editor
Fishing for eyeballs The secrets of VAS marketing
Acquiring users is costly and highly competitive, but what are some of the basic digital marketing tactics that can be deployed to increase eyeballs on your VAS and to retain those that you already have?
As the battle to acquire users intensifies, value added service (VAS) providers be they content, services or games, need to find new ways to attract eyeballs (see page 1). To stand out, VAS content providers must employ a robust marketing strategy that resonates with their target audience.
The role of SEO in VAS marketing
Alongside all of these mainstream marketing tricks to get eyeballs, it is all for nothing unless you optimise for search. The list of benefits from SEO include:
• Higher rankings: Effective SEO strategies lead to better search engine rankings, making VAS content more discoverable to potential users
• Targeted traffic: By optimising for relevant keywords, SEO drives qualified traffic to VAS content, increasing the likelihood of conversions
• Website optimisation: SEO encourages the creation of userfriendly websites, improving engagement and retention rates
• Mobile optimisation: With Google’s mobile-first indexing, SEO ensures that VAS content is optimized for mobile devices, catering to the growing mobile user base
• Long-term results: While paid ads stop generating traffic once the budget runs out, SEO continues to drive organic traffic over time
• Higher ROI: As SEO targets users actively searching for specific content or services, it often leads to higher conversion rates and better return on investment
• Keyword-rich content: SEO informs content creation, ensuring that VAS content incorporates relevant keywords and topics that users are searching for
• Quality content: SEO encourages the creation of high-quality, valuable content that addresses user needs, which in turn improves search rankings and user engagement
• Market insights: SEO research provides valuable insights into competitor strategies and market trends
• Brand authority: Consistently ranking well for relevant searches helps establish VAS content services as authoritative sources in their niche
• Structured data: Implementing structured data helps search engines better understand VAS content, potentially leading to rich snippets in search results.
Customer acquisition and retention is a top priority for marketers. I don’t need to tell you that cost of acquisition is getting higher while increasing spending on retention can improve profits. In fact, a 5% increase in retention spend can yield as much as a 30% increase in profits.
We have seen in the previous article how costly and difficult that is becoming, so what are the marketing tips and tricks that can help get those eyeballs looking at your content, app, service, game or other VAS property?
CONTENT MARKETING
Creating high-quality, valuable content remains one of the most effective digital marketing strategies. But this doesn’t just mean making a brilliant game or video or show, it means creating exciting and engaging content around that. Think of it as turning that service or offering into a brand in its own right. To do this you can create:
Thought leadership content: Producing insightful content that showcases expertise and establishes authority in your niche Diverse content formats: Use various formats like blog posts,
videos, infographics, and case studies to cater to different audience preferences
Create compelling content: Invest in creating valuable content that resonates with your target audience but don’t just limit yourself to the game, TV programme or video you are offering.
Informative articles and blog posts: Share industry insights, tips, and how-to guides to establish your brand as a trusted authority.
Engaging videos: Create visually appealing videos that showcase your content offerings and tell your brand story (see below).
Interactive content: Use interactive elements like quizzes, polls, and calculators to increase user engagement and capture valuable data.
Personalised content: Tailor your content recommendations to individual user preferences based on their browsing history and behaviour.
PERSONALISATION AND TARGETED CAMPAIGNS
Tailoring marketing efforts to specific audience segments is crucial. Again, you will have done this with the content you have made or acquired, but also apply that to thee marketing content around it. You can do this through:
Data-driven personalisation: Collecting and analysing user data to create personalized marketing messages
Account-based marketing (ABM): Focusing on high-value
accounts with personalized strategies, especially effective for B2B services
Segmentation: Dividing the audience based on preferences, behaviour, or demographics for more targeted campaigns
SOCIAL MEDIA MARKETING
Leveraging social platforms for engagement and brand building is marketing 101 these days, but how can you apply it to content and VAS marketing? Why not try adopting these tactics across your business:
Platform selection: Choosing the most suitable social media platforms based on the target audience – for example, LinkedIn for B2B, Instagram for visual content
Consistent brand voice: Developing a consistent and engaging brand presence across platforms Community engagement:
Actively interacting with followers and building a community around the brand
VIDEO MARKETING
Incorporating video content into marketing strategies – shorts and long form, you will need both. When doing so, think about how to deliver your message through:
Diverse video types: Creating instructional videos, announcements, behind-the-scenes content, and event coverage
Platform optimisation: Tailoring video content for different platforms (such as YouTube, TikTok, Instagram Reels)
EMAIL MARKETING
Sounds old fashioned, but you still can’t beat email. Use it as a powerful tool for nurturing leads and customer relationships through:
Personalised campaigns: Craft-
ing targeted email campaigns based on user segments and behaviours
Automation: Implementing automated email sequences for lead nurturing and customer onboarding
VOICE SEARCH OPTIMISATION
Adapting content for the growing trend of voice search is not yet perhaps a top priority, but rest assured that it will be in the coming months. Try: Featured snippet optimisation: Structuring content to appear in featured snippets, which are often used for voice search results
Conversational keywords: Optimising for natural language queries typical in voice searches
ANALYTICS AND DATADRIVEN DECISION MAKING
Leveraging data to refine and
improve marketing strategies is already well established in the marketing world, but doing it right is a challenge that many don’t get right. Try:
Performance tracking: Monitoring key metrics across all marketing channels
A/B testing: Continuously testing and optimizing various elements of marketing campaigns
ROI analysis: Focusing on strategies that deliver the best return on investment.
BUILD STRONG PARTNERSHIPS
Collaborate with other businesses and content providers to expand your reach and crosspromote your services. Partnering with complementary businesses can help you tap into new audiences and generate additional revenue streams.
The Middle East, a region known for its rich cultural heritage and rapid technological advancements, has emerged as a significant market for value-added services (VAS) content. With a young and tech-savvy population, increasing smartphone penetration and robust internet infrastructure, the region offers immense potential for digital content providers.
The overall market is one that is very much in growth mode, with CAGR projected to top 10% in the next five years, as consumer embrace everything from video streaming to digital goods ecommerce on their mobile phones. As laid out below, the opportunity in each segment is huge, but there are some standouts in the Middle East that differentiate it from other markets.
Among them is the huge hunger for live streaming. This encompasses everything from live streams of events – particularly sport, and especially soccer – but it also encroaches on the user generated live streaming, where ordinary consumers stream their own content. While this has typically been the preserve of the mainstream global streaming and social platforms such as TikTok, Facebook and Instagram, such is the growth in the market that a number of local players have popped up to also capitalise on this trend.
MARKET DYNAMICS
And this localisation is another key facet of the Middle East market. Of all the VAS markets globally, the Middle East is perhaps the most culturally sensitive. While all markets demand content in their own language and based on themes that chime with their culture, the Middle East is more specific.
Stricter religious rules that forbid gambling, nudity and certain styles of dress all shape the kinds of content that sell well across the region. This means that standard content in music and video that plays well in other markets, may not be allowed in these countries.
However, the gap that this creates is readily filled by all the localised and culturally specific content that users across the region want to consume.
As said, live streaming content is very popular, with sport leading the way. Localised soap operas and reality TV is also a significant generator of eyeballs. Examples include shows on Shahid like “Z Raseedak” and “Stiletto”, which relatable content that reflects local culture and lifestyle and offer interactivity for viewers.
There’s also a surge in demand for special programming during Ramadan. Platforms create and curate content specifically for this period and it is particularly popular as families traditionally gather together at this time and watch
TV. Spin-off content around this is also popular.
The one advantage the region does offer is that it is largely united behind a common language and so content can be transferred from market to market.
This focus on localisation doesn’t mean that there is no room for international content. While local content is crucial, there’s also high demand for popular international shows and movies.
Netflix, in particular, is popular for its diverse international offerings, giving consumers in the Middle East exposure to global entertainment and access to high-budget productions and popular franchises, such as Marval, Disney and so on.
Delivering this are a range of companies from the big international brands that you would expect through to some interesting emergent local players. Companies like Google, Apple, Amazon and Netflix have significant market presence, however, local companies such as Anghami, Shahid and Noon are wellpositioned to cater to the specific needs and preferences of Middle Eastern consumers. Telecom operators like Etisalat and STC also play an increasingly crucial role in providing VAS content to their subscribers.
HOW THEY PAY
A variety of payment tools are used to purchase VAS content in
the Middle East, including all the ones you’d expect. Credit and debit cards are widely accepted, especially in urban areas, in stores, but online this is growing only slowly. More common are mobile payment services such as Apple Pay and Google Pay, which are rapidly gaining popularity.
Digital wallets like PayPal and regional options such as CashU, PayTabs, Telr and Noon Payments are used for online transactions.
Carrier billing is the one that gets the most attention, however. Users can charge purchases to their mobile phone bills, making it a convenient option for those without credit cards or digital wallets and it has taken the market by storm since it allows all users, even the unbanked and those with no cards or wallets to also join the digital revolution. While DCB has led to some fraud issues, these have largely be ironed out across the market and DCB continues to drive the enormous growth being seen in the region.
As a result, the Middle East’s VAS content market is experiencing rapid growth, driven by factors such as increasing internet penetration, rising disposable incomes, and a burgeoning youth population.
However, challenges such as piracy, regulatory hurdles, and cultural sensitivities need to be addressed to ensure sustained growth.
MUSIC STREAMING
REGIONAL APPEAL: The region’s rich musical heritage, encompassing Arabic, Persian, and other regional genres, has fuelled the growth of music streaming services.
REVENUE MODEL: Subscription-based models, ad-supported models, and premium tiers with additional features are common.
USER BASE AND VALUE: Estimated at around 3 million subscribers, generating an estimated US$1billion
KEY PLAYERS: Anghami, Spotify, Deezer
MOBILE GAMING
REGIONAL APPEAL: Mobile gaming has gained immense popularity, especially among younger demographics. Casual games, multiplayer games, and battle royale games are highly sought after.
REVENUE MODEL: In-app purchases, advertisements, and premium versions are common monetization strategies.
USER BASE AND VALUE: The Middle East gaming market size was valued at US$7.45 billion in 2023
KEY PLAYERS: King, Zynga, Tencent Games
VIDEO STREAMING
REGIONAL APPEAL: The Middle East has a strong appetite for local and international content, including movies, TV series, and original productions.
REVENUE MODEL: Subscription-based models are the primary revenue driver and Free Ad-supported TV (Fast) also gaining in popularity.
USER BASE AND VALUE: The Middle East & Africa video streaming (streaming media industry) market generated revenue of US$5.7 billion in 2023
KEY PLAYERS: Netflix, Amazon Prime Video, Shahid, MBC Shahid
ECOMMERCE
REGIONAL APPEAL: The region’s growing middle class and changing consumer behavior have driven the growth of e-commerce platforms.
REVENUE MODEL: Sales of products and services, commission fees, and advertising revenue
USER BASE AND VALUE: The total e-commerce market size in the MENA (Middle East and North Africa) region reached nearly US$29 billion in 2023, with a year-on-year growth of 11.8%
KEY PLAYERS: Amazon, Noon, Souq
LIVE STREAMING
REGIONAL APPEAL:
Since the pandemic, Middle Eastern users, particularly the young, have embraced live streaming themselves via mobile internet. There is also a growing market for live streaming of sports events
REVENUE MODEL: a mix of freemium and ad funded, along with some subscriptions, with Free Ad-supported TV (Fast) also gaining in popularity
USER BASE AND VALUE: The Middle East & Africa live streaming market generated revenue of US$11.8 billion in 2023
India has rapidly embraced digital content and now stands as a market that is catching up with the US and China and, arguably, offers the biggest opportunity out there for telemedia. Paul Skeldon crunches the numbers
India’s burgeoning digital landscape has transformed the way consumers access and consume content. The value-added services (VAS) content market, a key segment of this digital revolution, has experienced remarkable growth, driven by increasing smartphone penetration, affordable data plans and a youthful population with a penchant for digital entertainment.
Given the size of the Indian population, it comes as no surprise that the numbers around streaming of digital services are huge. Just look at video streaming services. The video streaming (SVoD) market in India is forecasted to reach US$2.02 billion in 2024. It’s predicted to grow at a CAGR of 9.77% from 2024 to 2029, reaching US$3.22 billion by 2029.
The broader video streaming market (including both SVoD and AVoD) generated revenue of US$5,458.9 million in 2023. This is projected to reach US$25,044.1 million by 2030, growing at a CAGR of 24.3% from 2023 to 2030.
Music streaming adds another mass of streams. In 2023, India had 1.037 trillion total ondemand music streams, second only to the USA. India also witnessed the highest year-onyear increase in total annual on-demand music streams, with about 463.7 billion more plays compared to its 2022 figures.
Add in games, social media
UGC video, education/edutainment and all the other things consumers globally buy digitally and India has become a massive and exploding opportunity for the telemedia sector and the wider digital industry.
In fact, online education is by far the largest segment of the Indian content market, generating more money than video streaming in 2024.
While the details of each segment are detailed in the panels below, how those consumers consume the content and pay for it shows just how advanced the Indian VAS market is and how ripe an opportunity it is for the telemedia sector.
MARKET DYNAMICS
Consumers in the Indian market are hungry for content. The relatively recent proliferation of smartphones across great swathes of the emergent middle and upper classes in the country have driven a rapid expansion of content services. Aside from this demand for good content – long and short form, Western and local – consumer preferences are also strongly influenced by factors such as affordability, convenience and security, as they are in other markets.
Affordable data plans and payment options have made VAS content accessible to a wider audience, as has a competitive
content market, which has driven down price of the services themselves. Similarly, digital platforms offering a seamless user experience, enabling consumers to access content onthe-go and pay for it easily (see below) has also been a huge factor driving the market. These reliable payment systems and secure platforms are essential to build trust among consumers.
As a result, however, the Indian VAS content market is highly competitive, with several key players vying for market share. Telcos such as Reliance Jio, Airtel, and Vodafone Idea have invested heavily in digital content, offering a range of services, including music, video, and gaming. Meanwhile, global OTT giants such as Netflix and Amazon Prime Video, along with local players like Hotstar and JioCinema, have made significant inroads into the Indian market Digital content aggregation companies including Hungama and Times Internet also aggregate content from various sources and offer it to consumers through their platforms at an extremely competitive rate.
Mobile gaming companies, both domestic and international, are also capitalising on India’s growing gaming community.
HOW THEY PAY
As said, payments are a crucial part of delivering both the
convenience, security and affordability of these services and have been a major contributor to the explosive development of the Indian VAS market.
And there are quite a variety of payment tools used to purchase VAS content in India. Mobile wallets are particularly popular as they offer convenience and security for online transactions. Popular options include Paytm, Google Pay, PhonePe, and Airtel Payments Bank. While credit and debit card usage is increasing, it is still less prevalent than mobile wallets.
UPI (Unified Payments Interface) has also gained significant traction, allowing users to make instant payments using their bank accounts. Developed by the National Payments Corporation of India (NPCI), UPI is an instant payment system that enables inter-bank peer-topeer and person-to-merchant transactions. It allows users to link multiple bank accounts to a single mobile application, works through mobile devices and uses a Virtual Payment Address (UPI ID) to transfer funds between accounts.
It operates 24/7 and enables immediate money transfers and, as of 2024, has more than 260 million users in India and is supported by some 330 banks and 25 apps.
And, of course, carrier billing, where users charge purchases to their mobile phone bills, is extremely popular thanks not only to its convenience, but also that offers those with no bank account or card access to the digital world.
The Indian VAS content market is poised for further growth, driven by factors such as increasing smartphone penetration, improving internet connectivity, and rising disposable incomes. However, challenges such as piracy, content quality, and regulatory hurdles need to be addressed to ensure sustained growth.
MUSIC STREAMING
REGIONAL APPEAL: The Indian music industry is one of the world’s largest. Music streaming services offer a vast library of Bollywood songs, regional music, international hits, and podcasts.
REVENUE MODEL: Subscription-based models, adsupported models, and premium tiers with additional features are common.
USER BASE AND VALUE: 1.037 trillion on-demand music streams, generating 24 billion Rupees (US$280m)
KEY PLAYERS: JioSaavn, Spotify, Gaana, Wynk Music
DIGITAL COMICS AND EBOOKS
REGIONAL APPEAL: India has a rich literary tradition, and digital platforms offer a convenient way to access a vast library of books and comics.
REVENUE MODEL: Sales of digital books and subscriptions to ebook services.
USER BASE AND VALUE: 144.1 million users, generating 19.6 billion Rupees (US$231.74 million)
REGIONAL APPEAL: Indian audiences have a voracious appetite for original content, including web series, movies, and TV shows. Video streaming platforms offer a diverse range of content, from Hollywood blockbusters to regional language content.
REVENUE MODEL: Subscription-based models are the primary revenue driver.
USER BASE AND VALUE: 115.7 million users, generating 455 billion Rupees (US$5.4billion)
KEY PLAYERS: Netflix, Amazon Prime Video, Disney+ Hotstar, JioCinema
ONLINE EDUCATION:
REGIONAL APPEAL: The education sector has embraced digital learning, with online platforms offering courses for various academic levels and professional certifications.
REVENUE MODEL: Subscription-based models, one-time course fees, and test series.
USER BASE AND VALUE: 283.1 million users, generating 566.16bn Rupees (US$6.71 billion)
KEY PLAYERS: Byju’s, Unacademy, Vedantu, Upgrad
MOBILE GAMING:
REGIONAL APPEAL: Mobile gaming has gained immense popularity in India, particularly among younger demographics.Casual games, multiplayer games, and battle royale games are highly sought after.
REVENUE MODEL: In-app purchases, advertisements, and premium versions are common monetization strategies.
USER BASE AND VALUE: 195.5 million users, generating 12.8 billion Rupees (US$151.6 million)
While much attention is directed at North Africa when looking at value added services, the rest of Africa – SubSaharan Africa as it is better known – has the beginnings of its own thriving market. Paul Skeldon reports
Sub-Saharan Africa, a region with a youthful population and rapidly growing digital landscape, has emerged as a significant market for value-added services (VAS) content. With increasing smartphone penetration, affordable data plans and a growing middle class, the region offers immense potential for digital content providers. While much attention is focussed on North Africa – lumped in with its more culturally adjacent Middle East neighbours – it is easy to forget that there is a population of 1.24 billion Sub-Saharan Africans in the rest of the continent. Sure, mobile and internet penetration growth has been slow, but it is starting to rise and as a result the region offers the next big thing in VAS growth in the years ahead.
According to figures from the GSMA, mobile technologies and services generated more than 8% of Sub-Saharan Africa’s GDP, which amounted to $170 billion, in 2023. Small perhaps compared to other markets, but the potential for growth is enormous.
The video streaming market alone is valued at US$1.8 billion in 2022 and is set to grow at a CAGR of 11.39% between now and 2027.
By then, it is estimated that 6.6% of homes will have a TV and with it at least one subscription. But it is mobile VAS where Africa will come into its own. Already Netflix, Amazon,
Apple and Spotify are making early inroads across markets here. They are being joined by local players such as Boomplay and Showmax which are offering localised services in local languages to local markets.
GOING LOCAL
And it is this localisation that is key. While it is easy to look at ‘Africa’ as a market, SubSaharan Africa is in fact made up of 53 individual countries with a population of 1.03 billion people, each nation with its own tastes and traditions, their own languages, cultures and currencies.
This is what makes the region more of a challenge; tapping into each is tough and in many smaller nations, local players are the way to go. That said, for those looking to target SubSaharan Africa, there re several key countries that it is worth perhaps focussing on.
Kenya, Nigeria, Senegal, South Africa, Tanzania, and Zimbabwe account for 36.5 percent of the population, according to a 2016 World Bank survey. These markets already have a degree of established infrastructure, a burgeoning middle class and more robust banking infrastructure.
Of these, South Africa and Nigeria are the strongest markets with the most potential. Growth is also expected in West and East Africa, including countries including Angola, Tanzania, Kenya, Ghana, Uganda and Ethiopia.
MARKET DYNAMICS
As might be expected, the SubSaharan African VAS content market is dominated by both global and regional players, all seeing the latent potential in the market. Global tech giants like Google, Apple, Netflix and Spotify have made significant investments in the region. Meanwhile, local companies like MPesa, Boomplay, and Jumia are well-positioned to cater to the specific needs and preferences of African consumers.
Telecom operators such as MTN, Airtel and Safaricom are also playing a growing and increasingly crucial role in providing VAS content to their subscribers.
HOW THEY PAY
A variety of payment tools are used to purchase VAS content in Sub-Saharan Africa, but the two that have the most users and the greatest traction are mobile money services and carrier billing.
Mobile money services such as M-Pesa – which pioneered these services – Airtel Money and MTN Mobile Money have revolutionised financial inclusion in the region, enabling users to send and receive money, pay bills and purchase goods and services without a bank account and with their mobile device.
And it has proved highly successful. Mobile money processing volumes in Africa were estimated at approximately US$850 billion in 2023 and this is projected to double to more than US$1.8 trillion by 2028.
Carrier billing – another favourite with unbanked customers – is also popular in the region. No firm figures exist for how much is spent using DCB here, but across the Middle East and Africa together the number of carrier billing users is expected to grow from 742 million in 2024 to some 800 million in 2027.
With both mobile money and DCB both driven by growing smartphone penetration, both of these are starting to see some competition from mobile wallets. While still nascent in the region, they are starting to attract some attention and are set to grow strongly.
CHALLENGES
The Sub-Saharan African VAS content market is experiencing rapid growth, driven by factors such as increasing smartphone penetration, improving internet connectivity, and a growing middle class.
However, challenges such as infrastructure limitations, digital literacy and an array of regulatory hurdles need to be addressed to ensure sustained growth.
VAS & CONTENT
The value-added services (VAS) sector and the content market that sits behind it have had a strong 2024, especially in MENA, and this is set to continue into 2025 (see page 22).
• Sports continue to be a prime content vertical, with the ability to slice, dice and analyse all sports creating massive content opportunities. This is particularly prevalent in MENA, where the push towards sports has created a booming market –which itself leads to developments across the telemedia ecosystem, including payments, messaging and more.
• Health and wellbeing content is set to continue to grow across 2025 in all regions, driven by younger consumers who are more focussed on living healthy lives than their more hedonistic elders.
• Edutainment is also on
the rise, with the market for educational content already strong in all markets, but with India being a particular driver.
• Short form video – with the continued popularity of TikTok, Instagram Reels and YouTube Shorts, short-form, attention-grabbing videos will dominate mobile content. Brands will focus on storytelling that captures user interest within seconds
• Immersive and Web3.0
– with user acquisition (UA) a growing issue around the popular yet highly competitive content and VAS market, content providers are turning to tech to launch even better services. Immersive, 3D content is starting to come through – check out Hungama’s offering around sports – while ‘web3.0’ services involving the metaverse are slowly but surely emerging. We predicted that metaverse
would be huge by the end of 2024; it isn’t but it is coming.
• AI content creation – AI will significantly enhance user experiences on mobile platforms, enabling real-time personalization of content and predictive recommendations. Tools will repurpose content across formats, making it easier to reach diverse audiences effectively and consistently. AI-driven features in smartphones, such as Apple’s and Google’s upcoming devices, will transform how users interact with their devices and consume content
• Superbundling This will continue to be important to MNOs, DCB and content markets. Boring but true. Bundling services – from within and without the telecoms sphere – together is a huge opportunity for MNOs and it drives DCB too, especially in evolving markets – so expect more of this to come.
PAYMENTS
Key mobile payment trends for 2025, including carrier billing and direct carrier billing (DCB), reveal an evolving market driven by convenience, digital monetisation and technological integration.
• Carrier billing will continue to grow (see page 16). Spending through DCB is predicted to reach $100 billion by 2025, growing from $37 billion in 2020, representing a 172% increase, according to Juniper Research. DCB’s simplicity makes it increasingly popular for subscription services like gaming, video streaming and music platforms. DCB is also evolving beyond digital content to physical goods, ticketing and gambling. Integration with IoT and other services – all of which are driven by the growth of 5G (see below) – will also see this billing tool reach new heights and new levels of penetration worldwide.
2025 what will be big in telemedia
As the new year hoves into view, we take a look at what some of the big trends in telemedia will be in 2025
VALUE ADDED SERVICES
• Digital wallets are also growing in all regions and will really come into their own in 2025 (see page 19). Apple Pay, Google Wallet and Samsung Pay are growing in popularity due to their security and ease of use. Many regional versions are also starting to appear, some of them backed by banks and well known fintechs, others startups with no pedigree. Either way, wallets are starting to appeal to mass market users and, thanks to the tech that sits behind them they are increasingly integrated into apps and services, allowing for one-click transactions.
• A2A payments will grow, driven partly by this embedding of wallets and partly through a raft of new services popping up worldwide (see page 18). Services such as Pix in Brazil, UPI in India, PSE in Colombia and mobile money in Kenya. The rise of A2A payments will also form part of the UA strategy adopted by content and VAS companies, as the streamlining of payments – and therefore easing onboarding – will become, for a while at least, key to acquiring users.
• Blockchain and crypto are also on the rise. Blockchain technology is enabling secure, transparent transactions, and cryptocurrencies like Bitcoin and Ethereum are being integrated into mainstream payment platforms. The use of stablecoins for mobile payments is rising due to their reduced volatility compared to traditional cryptocurrencies. Expect more of this in 2025.
• Voice payments could also start to become a thing. Using biometrics – fingerprint and face recognition – through smartphones is already a key part of the growth of wallets, but the use of voice as a unique identifier is also likely to appear in 2025. This could well also lead to the creation of other services that are initiated and then transacted using only voice, which opens up new possibilities across the market and around the world.
ENGAGEMENT
Messaging and engagement is going to play a key role in driving users to user VAS, as well as being a booming business that allows any kind of company to interact with its customers.
• RCS messaging is the big news in engagement in late 2024 and will continue to thrive in 2025, now that Apple is on board. How it plays out remains to be seen (see page 26), but with near ubiquitous handset coverage, businesses are expecting to get on board with using RCS to deliver richer and perhaps transactional messages in 2025. In Germany, it is already happening and we are seeing growing interest in trials around the world.
• OTT messaging will be impacted by this growth in use of RCS, but by how much all depends. Just because consumers can use RCS, doesn’t mean they will. Many won’t even know what it is.
MARKETING
With UA a top priority and with a consumer base emerging that wants to be talked to in new ways, how telemedia services are marketed and promoted is also set to change.
• Commerce media will be a key part of this. Google may have stalled the kill order on cookies, but cookies will eventually come to an end – let’s face it, most users block them wherever they can. This means that brands and service providers face an uphill struggle to understand their users and to personalise how they are marketed to. Here, consumer facing businesses – probably, in the telemedia case, brands, merchants, MNOs and aggre-
For companies reaching out to consumers, sending RCS will initiate interaction on the channel, but for consumers already wedded to using OTT messaging such as WhatsApp and WeChat, they are unlikely to change. The likely scenario is that RCS will increase overall use of business messaging and everyone will be a winner – except, perhaps, SMS.
• Social media messaging is only going to grow, with GenZ becoming real-world spenders, tapping into how they communicate will be key; and that means social media sites such as TikTok and Instagram and their like. This does involve messages, but more it is going to also involve video and clips. This sits at the nexus of marketing (see below) and messaging, but we are set to see growth in video messaging, possibly even as part of shortform entertainment content. We could well see, in 2025, the beginnings
gators – can leverage all that first party data they have from the interactions they already have with their customers. Using this to personalise marketing campaigns is already in play; selling access to that is next. This is commerce media, where consumer facing companies, for example and MNO, can sell ad space on their digital properties (and even their physical stores) for brands to advertise relevant goods and services. In the digital realm, this can be targeted to who is looking at what, giving in theory ads that talk directly to the individual customer. This is already growing in popularity in retail – under the name retail media – but it is slowly
of enter-gagement, where brands are ‘messaging’ younger consumers using entertainment short-form content generated by AI.
• Voice and video messaging interaction could also see growth. Anyone under the age of 16 is already doing it with their friends, opting to send voice messages rather than text or WhatsApp. If they aren’t Snapping each other, they are sending voice and video messages. Expect businesses to follow this trend.
• Micro-conversions and real-time engagement are also set to take off as a result. Tracking microconversions, such as app interactions or newsletter sign-ups, will help optimise user journeys. Quick responses to user queries on social platforms will also be crucial, as will doing this all through voice, video, OTT and RCS.
drifting out into the world of all consumer-facing businesses that have ‘data at scale’ Expect and explosion in this in 2025.
• Always-on marketing and omni-channel SEO will also play an increasing role. Consumers will expect brands to maintain a seamless, 24x7 presence across all platforms. Omni-channel strategies will ensure consistent experiences, supported by AI-driven tools for rapid engagement and response.
• Soundless and visual-first ads will appear too, tapping in to how consumers interact with the world and each other. As more users consume mobile content silently, soundless ads using text and visuals will
NETWORKS AND TECHNOLOGY
Underpinning all of this are, of course, the networks and the tech that sits within and around them. Here, there will be both incremental and large scale changes to come.
• More 5G will be the basis for much of the developments seen across the sector in the coming year. Better bandwidth and more reliable networks will drive the improvement of existing services and the creation of many new ones. Having such broad, fast networks will facilitate much of what has already been discussed above and make it sufficiently reliable. Better wifi will also augment this, leading to a surge in rich, video led services.
• 6G could also make an appearance in
2025
become the norm. This aligns with the demand for nonintrusive advertising.
• In-game and interactive marketing will also play a role in services such as games, entertainment and education. For example, mobile gaming continues to grow, presenting opportunities for branded content and product placements that feel natural within games. The same goes for lifestyle, health and wellbeing and many other categories. All backed by first party data-led commerce media.
• Voice searches will grow in popularity, encouraging mobile content that is optimised for conversational queries.
2025. No, there won’t be a 6G roll out, but we will get to see more of that 6G might look like. The US has already revealed its strategies for 6G, which could give it a significant head start in the race to lead the development of future telecom networks. Among the elements expected to benefit from 6G are cognitive applications, global 3D connectivity and extended reality (XR), highlighting how it will transform digital experiences. These and other emerging technologies require superfast speeds, massive bandwidth and low latency to ensure those experiences live up to expectations. This undoubtedly bears similarities to the obstacles previously faced by VR, which was let down by the capability limi-
SECURITY
Fraud in online services is a given: there is no way round it, as fast as new anti-fraud tools arrive, the fraudsters find new ways to scam the system. As new services appear, so new opportunities arise for such poor behaviour – and more tools are needed to fight the fraudsters.
• Ad fraud and deception fraud are likely to grow. DCB fraud is sort of under control thanks to Evina and MCP et al and their use of AI to watch for frauds. But that is now driving new fraud in content services that use ad fraud and decep-
ARTIFICIAL INTELLIGENCE
AI underpins its all. AI already plays a significant role in all facets of digital life, but in telemedia pretty much every aspect of how it will run and how it will develop will be driven in some way by AI. Payments are already policed by AI, but the data gleaned from how people pay and for what will be parsed by AI to create an even better and more granular – and therefore personalised – view of the consumer.
tations imposed by 4G connectivity. One of the biggest challenges facing telecommunications companies during the rollout of 6G will be handling the logistics surrounding the frequency spectrum.
• More efficient networks will help us move towards this 6G world. Many services are held back by network latency issues. Even super-fast 5G is hampered when user numbers are high. It is overcoming this that will help shape the services that can be sold to consumers. Making networks more efficient will see AR, VR, metaverse and other services really fly. We aren’t there yet, but we may be by the end of 2025.
tion frauds to dupe users. As technology advances and new services appear, so too will new frauds. While the anti-fraud and cybersecurity companies will continue to innovate, there is always a degree of catch up being played as fraudsters seek to remain one step ahead.
• DCB fraud meanwhile will be ever present. As new markets/regions are opened up and as new services emerge that are DCB billed, so fraud will happen. There is a robust anti-fraud industry in action already, so damage should be limited, but watchfulness will be key.
This, in turn, will drive AI to be used to create everything from marketing messaging and materials to content to games to which payment method(s) are offered to any particular customer at any given time. AI will also be used to create the chatbots and video chatbots that interact with consumers, creating massive efficiency gains for companies that drives the customer interaction end of the sector.
• Messaging Fraud and pumping – as Business messaging becomes ever-more popular, increasingly there is a lot of artificial traffic inflation (AIT) going on and SMS pumping. It’s a conundrum as it costs someone – consumer, SPs, aggregators – but MNOs have no vested interest in fighting it as they make money from it. This is going to be the big story in messaging. It’s an open secret that there were people openly selling pumped SMS traffic, but eventually it will eat itself.
AI, too will, fight fraud, improve network efficiency and create the services that will sell.
In short, telemedia in 2025 is going to be an AI business – so get on board.
Payments revolution
How ecommerce is reshaping the global payment market
Ecommerce – for both digital and physical goods – is the driving force behind the evolution of payments. Paul Skeldon kicks off a deep dive into this evolution with a look at the global ecommerce payment market and how it is reshaping an industry
By 2029, the value of global ecommerce transactions will reach $11.4 trillion, up from $7 trillion in 2024. To put that into some kind of perspective, the GDP of the entire US is expected to be around $28trn, a little over twice what ecommerce brings in. If you want a starker comparison, global ecommerce is worth
more than the combined wealth of Germany, Japan and India. Ecommerce is big business. Very big business.
And all that stuff has to be paid for. Whether it is digital or physical goods – and increasingly the line between the two is greying – consumers want to be able to pay easily and conveniently
for these things. This is having a profound effect on the payments landscape. The traditionally hegemony of banks and credit card companies is yielding to a bunch of disruptors, both in a business sense and technologically.
According to research by Juniper Research in October, this substantial 63% growth
will be driven by the adoption of ecommerce across emerging markets in Asia, Africa, LatAm and the Middle East. In these regions, Alternative Payment Methods (APMs, or alt.payments) will enable noncard-centric market consumers to purchase online for the first time.
How Orange Middle East and Africa and Mastercard partner to digitise payments across Africa by 2025
With only 48% of the adult population in Africa banked, according to the African Digital Banking Transformation Report, the recently announced collaboration between Orange and Mastercard is designed to accelerate financial access, contributing to the financial empowerment of underserved communities in Cameroon, Central African Republic, Guinea-Bissau, Liberia, Mali, Senegal and Sierra Leone.
Orange Money customers will be able to instantly obtain a virtual or physical debit card, linked directly to their Orange Money wallets. These cards will allow seamless payments both locally and internationally, enabling transactions with local merchants and on any website or mobile app that
accepts Mastercard. Customers can easily request their virtual debit card via Max it— Orange’s Super App—and collect a physical card at a designated Orange Money Mastercard point of sale.
Speaking on the partnership, Aminata Kane, CEO Orange Money Group, Middle East and Africa, says: “This collaboration is an opportunity to bring top notch innovation to our customers, allow to pay with the Mastercard card linked to their Orange Money wallet when they travel internationally, and give them access to online shopping all over the world, in a simple and secure way. By offering our users the ability to pay effortlessly with Mastercard virtual card, we open the door to a world of new
possibilities and promote their financial independence.”
Amnah Ajmal, Executive Vice President Market Development, Mastercard EEMEA adds: “At Mastercard, we are committed to advancing financial inclusion by leveraging cutting-edge technology to create meaningful, scalable impact. Our collaboration with Orange Money represents a significant step in unlocking the full potential of digital financial services across Africa, enabling millions to participate in the global economy. This collaboration is a testament to our vision to building an inclusive digital ecosystem that leaves no one behind.”
For those that don’t know, APMs are any cashless and cardless way of transferring funds, such as digital wallets and account-to-account (A2A) payments (see page 19).
According to Juniper, by 2029, 360 billion ecommerce transactions will be made using APMs, constituting 69% of global ecommerce transactions – processing $7.9 trillion, twice the GDP of Germany.
As APMs make ecommerce payments more inclusive, unbanked consumers in emerging markets will shift their purchasing habits online. This shift will be complemented by increased investment in delivery ecosystems, making deliveries more viable and increasing ecommerce’s value proposition and thus perpetuating more growth and more payments.
EMERGING MARKETS
It is these emerging markets where the real growth with spring from. Alternative payment options have grown substantially, with APM transaction volumes leapfrogging cards, in emerging markets. As merchants look to attract new users and geographies, they must consider offering APMs a key strategy to accomplish this.
While the developed world sees ecommerce growing at 8.4% a year between 2023 and 2024, accounting for 20% of all retail sales, in emerging markets, ecommerce is growing at more like 20% a year, albeit from a smaller base.
A lot of this growth is coming from Asia, where internet penetration is set to hit 94% in 2025 and where a number of markets – the Philippines, Thailand and Malaysia in particular – are really exploding.
But it is across India, North Africa and parts of the Middle East, where the real potential lies. These markets are only now ‘coming up’ and, with the exception of India, are yet to truly
see an ecommerce explosion. Here, infrastructure is starting to expand and internet penetration is rising. However, it is the development of alt.payments that is going to really make it take off.
In the Middle East, carrier billing has brought about the start of the digital commerce revolution, making it relatively easy for consumers to start to consume content and services on their mobiles without having to have a bank account. Likewise, service providers and content providers have also managed to rapidly create a market for these services off the back of this ease of payment
For many markets this means adopting a range of new services. In others, it sees existing players – not least card companies such as Mastercard –working to create new methods of payment to tap into these markets (see panel).
What is increasingly clear in these markets is the need to combine payment methods into a pallet of options – and then to allow merchants to properly orchestrate how they use them.
A prime example is how Geidea, one of the Middle East, Turkey and Africa (META) region’s leading financial technology companies, has teamed up with tpay, the leading payment connector in the region, to reshape the digital payments space by offering an integrated suite of payment methods, including Direct Carrier Billing (DCB), card payments and ewallets – all accessible through a single aggregator. This collaboration is designed to enhance the payment experience for merchants and consumers while driving financial inclusion across the region.
By combining Geidea’s established network with tpay’s expertise, the partnership is poised to accelerate merchant acquisition and unlock new growth opportunities in key markets. It empowers merchants with
secure and flexible payment solutions that cater to evolving customer preferences, fostering greater financial inclusion.
“This partnership represents a significant milestone in our mission to offer merchants a full spectrum of payment options within a single platform,” says Eslam Gaber, VP of Commercial at tpay. “By integrating our capabilities, we provide a comprehensive solution that meets the diverse payment needs of merchants, enhancing their ability to serve customers seamlessly.”
tpay CEO Isik Uman adds: “Joining forces with Geidea allows us to complement our existing presence by adding new payment methods that deliver even more value to our merchants. We’re not just expanding our offering; we’re providing a versatile, unified payment solution that drives digital transformation and financial access across META.”
A spokesperson from Geidea says: “Integrating Direct Carrier Billing into our payment platform further enriches our offering, ensuring merchants have access to innovative payment solutions that elevate the customer experience. This collaboration underscores our commitment to seamless, secure, and inclusive payments throughout the region.”
THINK LOCAL
Just like ecommerce itself, this rapid and profound expansion of consumption of goods and content and the payments methods needed to support it, is borderless. The growth of these emerging markets make them highly attractive to foreign players. Just look at how companies such as Shein and Temu have broken out of China and come to dominate ecommerce in the US and the UK. The same is happening across emerging market, with players from all over the world looking to cash in on the growth.
For these companies – and the payment service providers (PSPs) that support them – there is a huge need to not only offer a range of payment types online, but also to make sure that they are the preferred types for each country and region.
According to Juniper Research analyst Lorien Carter in the report: “In order to effectively operate internationally, merchants need to offer customers local payment types they are familiar with, in their preferred currency, so they don’t get put off by having to calculate the exchange rate.
“Traditionally, this means making multiple partnerships with acquirers and necessitates multiple integrations. However, businesses can now integrate one service to handle all of their local payment needs, ensuring a more efficient and faster launch. Furthermore, merchants do not have to keep up with rapidly changing consumer demands for payment methods, instead relying on their partner to update their connections regularly.”
LOCAL ACQUIRERS
According to Carter, merchants need to work with local acquirers, as they know the market and they have higher authorisation rates. This is due to the transactions occurring in a familiar environment for the issuing bank, which increase regulatory compliance and authorisation.
“This insider knowledge leveraged by the local acquirer allows them to more accurately assess the legitimacy of purchases, reducing the chance of false declines,” says Carter.
She adds: “Additional benefits of this include being able to leverage domestic licenses to lower payment costs on cross-border connections. Transactions are also less likely to incur currency conversion charges and cross-border fees, benefiting the merchant.” A win-win-win.
Tools of the trade
What merchants want from payment providers
As ecommerce growth reshapes the payments landscape, what do merchants want from payments and what do they see as the tools needed to meet the demands of consumers? Paul Skeldon takes a look
A recent survey of merchants conducted by payabl., one of Europe’s leading financial services providers, reveals digital wallets and Open Banking are the pivotal forces set to transform the payments landscape in 2025. The survey reveals that 81% of merchants anticipate a surge in digital wallet usage, while 69% expect Open Banking and instant bank transfers to gain popularity as consumer demand for convenient, secure payment options continues to grow. Other methods that merchants anticipate will become more popular include QR code
payments (33%), BNPL options (25%), cryptocurrencies (21%) and CBDCs (11%).
The findings reflect an industry-wide shift toward faster, more adaptable payment methods that meet consumer expectations in an increasingly digital economy. A majority of respondents (59%) noted that consumer demand for convenience is the top driver of innovation, followed by advances in technology (52%) and regulatory changes (49%), underscoring the competitive advantage of seamless, user-friendly payment solutions.
INVESTMENT IN AI AND
Merchants are responding to payment challenges with a focus on technology that supports both security and operational agility. 65% of merchants plan to invest in artificial intelligence (AI) over the
next 12 months, recognising its role in real-time fraud detection and improved payment performance.
Additionally, 56% are adopting data analytics to gain critical insights into payment behaviour, while 38% prioritise API-based integrations to enhance flexibility and security in their payment ecosystems.
FRAUD PREVENTION AND REGULATORY COMPLIANCE CHALLENGES
When asked about the top challenges expected for the year ahead, fraud prevention topped the list, with 63% of respondents identifying it as a primary concern. Following closely behind, regulatory compliance also emerged as a significant challenge, with 60% of participants highlighting the complexities of navigating evolving regulations. Cybersecurity threats also ranked high, with 46% of respondents expressing concern over the increasing risks to payment systems.
Trends shaping the payments industry
While wallets and Open Banking are key factors in shaping consumer shopping culture and hence remaking the payments industry, the recent study of merchats by Payabl also finds some other trends casting a growing shadow across how the global payment industry is moving. Respondents to Payabl’s study identified instant payments as the most transformational trend in the payments landscape, with 57% identifying it as having the biggest impact on the industry. Regulatory changes, including PSD3 and APP fraud regulations, were also high-
lighted, with 50% of respondents noting their influence. The integration of AI and machine learning was identified by 44% as a critical trend reshaping the industry.
Other notable trends that are making an impact include open banking (35%), BNPL (27%), and cross-border payments (25%). Meanwhile, cryptocurrencies and digital assets are also garnering attention, with 19% of respondents recognising their growing influence. Lesser-discussed trends include embedded finance (13%) and sustainable payments (8%).
In addition, the survey identified other challenges that are likely to impact the industry, including the integration of new technologies like AI (44%), and the ongoing complexities of cross-border payments (10%). Customer experience optimisation and cost management were also cited by 32% and 25% of respondents, respectively.
“Merchants are clearly focused on future-proofing their payments strategy to meet the growing demand for convenience and flexibility and address the major challenges around regulatory compliance and fraud prevention,” says Ugne Buraciene, Group CEO of payabl. “By aligning technology investments with these consumer expectations, they are not only boosting resilience but also paving the way for a sustainable, future-ready ecosystem.”
FACING NEW REALITIES: SEPA INSTANT
As Europe’s SEPA Instant payment deadline approaches on 9 January 2025, industry readiness remains uncertain. While banks and PSPs are required to support instant payments, only 25% of respondents believe the industry will be fully prepared, highlighting the importance of collaborative efforts across regulatory bodies, financial institutions and merchants to ensure a smooth transition.
Further regulatory issues – not least the impending draft of the EU’s Third Payment Services Directive (PSD3) – are also set to shake up the industry. While this will have localised effects on Europe, it could well prove a blueprint for regulation of emerging financial services elsewhere in the world.
So, as fast as the market is changing, it could all change again as the decade roils to close. Interesting times for payments providers, merchants and consumers lie ahead.
Ball of confusion Trends shaping global A2A payments
João Del Valle , CEO of fintech firm EBANX discusses the three trends to watch in digital commerce transactions and how they are changing the very nature of commerce in LatAm, India and Africa
The growth of new payment methods is instigating significant changes in digital commerce worldwide, with the popularity of real-time payments like Pix in Brazil, UPI in India, PSE in Colombia and mobile money in Kenya signifying a cultural shift in the digital payments market.
In fact, A2A [account to account] transactions growth is changing the way people consume online across the globe. There are three trends in the digital economy that global companies need to pay attention to. Aside from the cultural shift driven by the popularity of A2A transactions, the transformation of payments into digital channels due to consumer behaviour and the rise of innovative services that combine credit and debit cards with alternative payment methods (APMs).
A2A IS THE KEY
It is A2A that is really shaping things, I believe. In Brazil, EBANX’s merchants saw a 16% increase in revenue after integrating Pix solution with EBANX and a 25% increase in their client base.
According to data from Payments and Commerce Market Intelligence (PCMI), by 2025, 44% of digital commerce volume in Brazil will be paid with Pix, surpassing credit cards’ volume, which will account for a 41% share. The popularity of Pix is a sign of the future of APMs across the globe.
In Colombia, PSE already
dominates digital commerce, with a 31% share of all volume transacted online in the country, per PCMI.
“And it’s not only about offering more options. It is also about bringing people in. PSE brought more than half of all new customers for two online retail companies that process payments with EBANX over a three-year period.
Another success story is mobile money in Kenya, which accounts for 48% of all digital commerce in the country. A mobile-native method, for a mobile-savvy population. At EBANX, this is the first choice of payment method for all merchants starting in Kenya. The A2A transactions, the executive comments, are playing an important role in digital inclusion worldwide.
CUSTOMER BEHAVIOUR CHANGING DIGITAL COMMERCE
In India, the growth of UPI since it launched in 2016 has sparked a revolution, transforming the former cash-based economy into a digital payments powerhouse, with 55% share of digital commerce, per PCMI, and the potential for 80% penetration, according to India’s Ministry of Information and Broadcasting.
In another cash-based country, Egypt, consumer habits are transforming the payments market – and the digital economy. There, 64% of the volume in digital commerce is paid with cash, cash-based vouchers or QR code, available for both
banked and unbanked consumers. They are literally digitising cash, making the global digital economy available for everyone - including the majority of the population who does not have access to financial accounts or cards.
HYBRID PAYMENT METHODS
There is also a need to balance cards and APMs across rising markets when it comes to digital commerce; how they complement each other – both where cards prevail, and where APMs are kings.
Another change is the innovative combination of APMs and cards into hybrid
payment methods in emerging markets.
In Tanzania, mobile money is enabling card payments in digital commerce, with MPesa partnering with Visa for a virtual card. Meanwhile, in India, credit cards are seamlessly integrated with UPI, enabling credit card payments through the instant payments app, in a well–known UX and flow.
A report from PwC published last August indicated that the number of credit cards in the country is expected to double by 2029.
The focus of the EBANX Payments Summit is to demonstrate how companies can achieve global growth in digital commerce by adding rising markets into their global expansion plans, and navigating the complexities and nuances of local payments. “Local payments are no longer exotic: they are mainstream for the global growth of global companies.
The price of fame
As ecommerce booms worldwide and alternative payment methods drive more consumers to buy online, fraud is on the rise. Paul Skeldon takes a look at the downside of the digital commerce revolution – and what can be done to help
Wherever there is money to be paid there will be fraud and, while ecommerce is exploding – and driving the rapid growth and evolution of the payments market – it is also starting to drive its own explosion of fraud, chargebacks and other problems that threaten to hamper this growth.
According to research by Juniper Research, the cost of ecommerce fraud will rise from $44bn in 2024 to $107bn in
2029; a growth of 141%, fuelled by the use of deepfakes created using AI to defeat verification systems being a key threat. This, combined with rising levels of ‘friendly fraud’ – where fraud is committed by the customer themselves, such as refund fraud – is increasingly threatening merchant profitability.
AI is enabling fraudsters to remain ahead of security measures and commit sophisticated attacks on a greater scale.
By creating credible messages and a large number of synthetic identities, AI is facilitating higher quality attacks with an unprecedented frequency. These technologies are also highly scalable; empowering fraudsters to heavily automate their attacks and overwhelm rules-based prevention systems.
Report author Thomas Wilson says: “Ecommerce merchants must seek to integrate fraud prevention systems that offer AI
capabilities to quickly identify emerging tactics. This will prove especially important in developed markets, where larger merchants are at higher risk of being targeted for fraud, such as testing stolen credit cards.”
IMPACTING DEVELOPING MARKETS
As seen on pages 16 to 19, the MENA region has experienced substantial growth in digital commerce and alternative payment methods. Digital payment volumes have grown by an impressive 658% since 2020, according to Dubai-based Checkout.com research. The number of consumers shopping online at least once a day has increased by 80% across the same timeframe, while 91% of the region’s customers have reported shopping online in the past two years.
This rapid adoption of digital payments reflects a shift towards convenience and efficiency in everyday transactions.
However, it is having a massive impact on ecommerce fraud, which in turn is having a significant impact on consumer trust and loyalty. A third (33%) of MENA consumers report being victims of payment fraud, says Checkout.com, while 39% of MENA users now prioritise secure checkout as their top concern. Up to 30% of shoppers would switch to a competitor’s website after experiencing a single falsely declined payment. These statistics highlight the growing importance of payment security in winning and retaining customer loyalty. For example, the preference for cash on delivery has halved from 41% to
20% over the past 48 months, reflecting broader acceptance and trust in digital payments, cards, and digital wallets. This shift is particularly pronounced in countries like Saudi Arabia, UAE and Kuwait.
ET TU EUROPE?
The problem is not confined to MENA. Ecommerce fraud is causing substantial financial losses in Europe. Payment fraud in the European Economic Area (EEA) reached €4.3 billion in 2022, with an additional €2.0 billion reported in early 2023, according to a study by the European Central Bank (ECB). It found that, online payment fraud losses are predicted to exceed $48 billion globally in 2023, with Europe accounting for 26% of this figure. The cumulative losses to online payment fraud globally between now and 2027 are expected to exceed $343
These significant losses are putting pressure on businesses to improve their fraud prevention measures as well as effecting payment providers and the payment tools they offer.
According to the ECB study, card payments had the highest fraud rate at 0.031% of the total transaction value in the first half of 2023 in Europe, while e-money transactions followed closely with a fraud rate of 0.022%. Credit transfers, despite having high absolute fraud values, had a low fraud rate of 0.001%.
Germany and France are the hardest hit by e-commerce fraud in Europe, while two out of every three online retailers in Germany identified an increase in e-commerce fraud. Over 85% of online merchants in Switzerland reported having been struck by fraudsters last year. These variations may lead to different rates of adoption for alternative payment methods across European countries. The report also shows a
significant difference between where transactions occur and where fraud takes place, with most fraud happening crossborder. This highlights the complexity of securing international transactions against fraud and may impact the growth of alternative payment methods for cross-border ecommerce.
PAYMENTS HOLD THE SECURITY KEY
To combat fraud and improve security, businesses are adopting new technologies, especially around payments. Contactless and mobile payment methods like Apple Pay and Google Pay have seen significant growth, with processing volumes surging by 14x and 4x respectively in the past 48 months. Meanwhile, merchants are leveraging
sumer interest in online shopping despite fraud concerns.
CHARGEBACKS AND FRIENDLY FRAUD
Almost three quarters (72%) of merchants have experienced an increase in chargebacks over the past three years, with many businesses raising prices to offset the growing costs.
These recently released findings from global chargeback tech company Chargebacks911 come as the payments industry grapples with the fact that illegitimate disputes by cardholders through card-not-present (CNP) transactions are outpacing the growth of eCommerce sales.
The findings from the 2024 Chargeback Field Report, which surveyed 300 retailers, from
The prevalance of fraud is affecting consumer behaviour: 93% of Europeans are worried about the rising cost of living, which may make them more cautious about adopting ecommerce payments
AI and machine learning for fraud detection and prevention and tokenisation – where details of bank account and sort code are replaced by a secure token instead to authenticate digital transactions – are increasingly being used, with businesses focusing on strengthening payment security, partnering with regulated payment service providers and leveraging advanced technologies to minimise fraud and optimise performance.
The prevalence of fraud is affecting consumer behaviour: 93% of Europeans are worried about the rising cost of living, which may make them more cautious about adopting new payment methods.
However, the German B2C ecommerce market was forecast to grow, and e-commerce sales hit over €129 billion in France in 2021, indicating continued con-
this pricing pressure gives more incentive to those inclined to commit first-party misuse. The data clearly shows that friendly fraud is the real issue, far surpassing criminal fraud in many sectors.”
THE BIG SHIFT
The report highlights a shift away from concerns over criminal fraud, with friendly fraud becoming the leading cause of chargebacks for many merchants. Nearly half of the respondents estimated that friendly fraud was responsible for at least 50% of their chargebacks, and 45% of those surveyed believed that customer misunderstandings—like not recognising transactions on billing statements—were a key driver.
small businesses to enterprise merchants., emphasise that the rise in chargebacks—driven largely by first-party misuse (also known as “friendly fraud”)—is having a direct impact on pricing strategies across industries.
According to the report, presented in partnership with Edgar, Dunn & Company, 57% of merchants who observed changes in chargebacks noted an increase in frequency, with an average spike of 18%.
As a result, nearly one-third of respondents admitted that the financial burden of managing these disputes has forced them to increase prices on goods and services.
“The rise in chargebacks is becoming a vicious cycle,” says Monica Eaton, CEO of Chargebacks911. “Merchants are raising prices to cover the cost of disputes, but in turn,
Moreover, many merchants are struggling to effectively combat these illegitimate claims. While 75% of participants reported challenging some chargebacks, nearly half admitted that they don’t track second-cycle disputes, which suggests their recovery rates may be lower than expected. In response to the rise in chargebacks, many merchants are turning to new technologies and strategies to mitigate losses. Two-thirds of survey respondents reported either using or planning to implement AI-powered fraud prevention tools. Despite these efforts, the report warns that businesses must do more to address the underlying issue of first-party misuse and better educate consumers on the proper use of chargebacks.
“Merchants need to be proactive, not just reactive,” added Eaton. “By employing better chargeback prevention tools and leveraging professional dispute management services, businesses can reduce their exposure to friendly fraud and regain control over their bottom line.”
Keys to the kingdom
Content underpins the VAS market and is going to be key to operator strategy, messaging uptake and user acquisition. Paul Skeldon takes a look at how these factors interlink and what content is set to drive the market
One of the overriding themes of this year’s World Telemedia Marbella show was that of user acquisition (see page 1). While the VAS content segment of the market is in rude health – and showing extraordinary growth opportunities across many regions, not least Africa and the Middle East – there is a growing worry that, with so many services all chasing the same eyeballs, cost of acquisition is rising and return on ad spend (ROAS) is declining.
This is particularly prevalent in games. As Tony Pearce, CEO of Reality+ – a blockchain based games developer – sees it, for smaller, niche players like him, the cost per install of games is now in the “tens of dollars” and is slowly becoming unviable.
One solution, he believes, is for smaller players to developed and incubate games and then licence them on to the bigger players who can afford the time and money needed to grow the spending user base to the levels needed to make money. However, this means diluting the revenues for these smaller developers.
Another solution, however, is to focus in on the content being offered.
CONTENT CONNIPTIONS
Seriously Fresh Media’s Julia Dimambro believes that getting the right kind of content – and that means being ultra-niche – holds the key to better user acquisition in the content end of the VAS business.
In her view, picking a category such as Kenyan GenZ-ers who are into crocheting and serving up a variety of well targeted crochet content off the back of those ads not only targets the right people, but gives them what they want –and it is so niche that ROAS is more healthy.
Her view was echoed across the show by many other speakers and exhibitors who all point to how getting eyeballs relies wholly now on really compelling content.
Seriously Fresh has long focussed on niche content, being a key player in health and wellbeing during the lockdown. Now the company is also seeing the benefits of broadening out what it offers and is embracing sports content (see panel).
This, says founder Julia Dimambro, is what SPs an consumers want more of right now and, thanks to some deals with
THE ROLE OF MNOS
Perhaps, too, the answer lies in developing the role of MNOs. In many regions such as the Middle East, carriers play a much bigger role in disseminating content and VAS than anyone else bar Google. Perhaps this is a role they can expand and enhance.
For smaller players such as Reality+, maybe working with operators to target their ‘captive’ audiences can help get services in front of eyeballs on a different, less crowded and competitive platform.
some big providers of sports news content, Seriously Fresh has added this to their roster.
While exploring niche and broader specialist interest content is one way to go to drive up engagement, for others it revolves around pushing the limits of technology. Indian content powerhouse Hungama is a prime example. It is offering immersive, 3D content that not only gives the consumer the kinds of content they want – sports, music, gaming, celebrity and so on – but puts them right in the middle of it.
Taking peripheral sports content and making it 3D allows the user to be immersed in the pre and post-match debates and analysis, creating a unique experience for the user – an experience that pulls in more users and, perhaps more crucially, makes them more sticky and more likely to keep spending and engaging.
All round, however, the key is to create the right content for the audience. That now involves looking locally and hyper-locally at markets and tailoring content accordingly – again using tech; this is perhaps where AI can really come into its own.
Operators also have other ways to reach consumers, such as messaging channels and, to some degree, handsets and other means of reach. These are all worth exploring as ways to engage consumers, generate eyeballs and create a better level of ROAS for developers. And one key way could be through messaging – particularly RCS (see page 26).
RCS HOLDS THE KEY? Rich communications service (PCS) is set to triple in traffic in the next five years, according to data out last week and it will be at the expense of SMS. According to data from Omdia collated for Infobip, RCS Application to Person (A2P) and Person to Person (P2P) traffic will increase from 1.5 trillion messages this year to more than 6 trillion messages in 2029. As a result, A2P RCS will generate revenues of $4.2 billion by 2029.
However, this growth is going to come at the expense of SMS, a separate study finds. According to separate figures from Juniper Research, SMS’s market share by value will reduce to 32% of global mobile messaging revenue over the same period, down from 45% in 2024.
But, the decline of SMS isn’t just down to RCS taking over. More, SMS is starting to be seen as too costly and too open to fraud. This is a worrying trend
for MNOs, many of whom still make a tidy sum out of SMS. For telemedia it offers both threat and opportunity. On the one hand, SMS based services – including PSMS – still make money for many players in
many parts of the world. RCS is still to offer up a convincing business model for replacing this (although I am sure one will appear in due course).
On the other hand, however, adopting RCS – in fact embrac-
Hot content and services in 2025
The value-added services (VAS) market is rapidly evolving across the Middle East, Africa, Latin America (LatAm) and Europe, driven by increasing smartphone penetration, 5G rollouts and consumer demand for digital services. By 2025, several types of content are expected to dominate the VAS market in these regions, each shaped by regional consumer preferences, socio-economic factors, and technological advancements. So what is going to be big and where?
GAMING AND ESPORTS
Gaming and eSports are projected to grow significantly, especially in regions like the Middle East, where youth demographics dominate, and Europe, where eSports culture is already wellestablished. Africa is emerging as a gaming market, driven by increasing smartphone penetration and the availability of affordable devices. 5G networks in these regions will enable smoother gaming experiences, especially for cloud gaming and augmented reality (AR) games.
BIG REGIONS: Middle East, Africa, and Europe.
KEY PLAYERS: Tencent, Activision Blizzard, Microsoft (Xbox Cloud Gaming), and regional telecom operators like MTN and Etisalat are expected to capitalise on this trend by partnering with gaming platforms and offering exclusive content bundles.
VIDEO STREAMING AND OTT CONTENT
OTT platforms like Netflix, Amazon Prime, and Disney+ will remain dominant, with regional players like Shahid (Middle East), Globoplay (Brazil/LatAm), and Sky (Europe) expanding their footprints. In LatAm and the Middle East, local-language content and culturally relevant programming will be critical to attracting subscribers. Europe, meanwhile, will see increasing demand for premium European productions and niche content.
KEY DRIVERS: Growth in 5G adoption will drive the consumption of high-quality video content, while partnerships between telecom operators and OTT platforms will make streaming more accessible.
BIG REGIONS: Middle East, LatAm, and Europe.
KEY PLAYERS: Netflix, Shahid, Globoplay, Vodafone, Orange, and Telefónica.
ing the raft of OTT messaging services out there – creates whole new ways in which to make money and create new services.
In conjunction with the VAS community’s need for better
user acquisition, there is an opportunity here for many to certainly look at how to create new acquisition tools that leverage the interactivity seen in RCS and OTT messaging (see page 26).
FINTECH AND MOBILE FINANCIAL SERVICES
Mobile financial services, such as mobile wallets, microloans, and insurance, will see explosive growth in regions with large unbanked populations like Africa and LatAm. Telecom operators in Africa, such as Safaricom (M-Pesa), MTN, and Airtel, are already at the forefront of mobile money, and this trend will continue to expand into services like credit scoring, savings accounts, and international remittances.
BIG REGIONS: Africa and LatAm.
KEY PLAYERS: Safaricom, MTN, Orange Money, Mercado Libre, and regional fintech startups collaborating with telecom operators.
HEALTH AND EDUCATION APPS
Demand for telehealth and edtech solutions will rise, driven by inadequate access to traditional healthcare and education in these regions. Mobile operators are expected to bundle these services with affordable data plans. For example, partnerships with health apps and remote learning platforms will cater to underserved rural populations.
BIG REGIONS: Africa and LatAm.
KEY PLAYERS: Vodacom, MTN, Coursera, Edmodo, and local elearning startups.
SOCIAL MEDIA AND INFLUENCER MARKETING
Social media content monetization will thrive in regions with younger populations, such as the Middle East and LatAm, where platforms like Instagram, TikTok, and YouTube dominate. Telecom operators will partner with influencers and content creators to drive data consumption and offer exclusive packages.
BIG REGIONS: Middle East and LatAm.
KEY PLAYERS: TikTok, Meta (Instagram/Facebook), YouTube, and local creators.
AR/VR AND METAVERSE CONTENT
AR/VR content will find a strong foothold in Europe, where advanced infrastructure supports the metaverse, and the Middle East, where governments are investing heavily in futuristic digital ecosystems (e.g., Saudi Arabia’s NEOM project). This content will cater to gaming, education, and virtual tourism.
BIG REGIONS: Europe and the Middle East.
KEY PLAYERS: Meta, HTC, Microsoft, Etisalat, and Vodafone.
WHY THESE TRENDS ARE REGION-SPECIFIC MIDDLE EAST: High disposable incomes and a youthful, tech-savvy population make it a hotbed for gaming, OTT, and metaverse content.
AFRICA: Limited traditional banking and healthcare infrastructure drive demand for mobile financial services and health apps.
LATAM: A growing middle class and demand for local-language entertainment propel OTT and social media content.
EUROPE: Advanced 5G infrastructure and regulatory support enable innovations in AR/VR, gaming, and premium OTT services. By 2025, the telecom VAS market in these regions will be shaped by collaborations between telecom operators, content creators, and technology companies, with tailored offerings meeting the diverse needs of these dynamic markets.
Virtual sports Driving the content market
Analysts from Research Nestor explore the global virtual sports market’s growth, applications, key players, trends and regional penetration, driven by digital innovation and young demographics – making it a must have content vertical
The virtual sports phenomenon is expanding rapidly, with the global market expected to grow more than fivefold by 2037. The virtual sports industry, initially a niche segment, is experiencing rapid global growth due to a convergence of technological advancements, increasing demand for interactive gaming and expanding accessibility across diverse market.
According to data published by Fantasy Sports & Gaming Association, in 2022 there were 62 million people playing sports in USA and Canada.
Unlike traditional sports, virtual sports leverage high-quality graphics and AI simulations, creating engaging sporting experiences that appeal to a tech-savvy, entertainment-driven audience. But what are the unique drivers behind the industry’s growth, its regional penetration, diverse applications,and trends shaping its future?
EXPANSION PATH
One of the main reasons for the global rise of the virtual sports industry is the widespread adoption of digital technologies and mobile platforms. With internet penetration growing across regions and more consumers using smart-
phones and other mobile devices, virtual sports are becoming accessible to a broader audience. The average internet penetration rate worldwide as of October 2024 was approximately 67%.
Furthermore, these games offer a shorter format compared to traditional sports events, allowing quick, immersive experiences that attract both sports enthusiasts and casual gamers alike. The shift in preferences for on-demand entertainment over traditional sports viewing is also fueling the industry’s growth.
Additionally, the rising popularity of online betting is creating another growth channel for virtual sports. Given that virtual sports events are simulated using computer algorithms, they can be run continuously, offering betting options 24/7. This consistent availability makes virtual sports particularly attractive to online sportsbooks, contributing significantly to the industry’s growth, especially in regions with established sports betting cultures.
REGIONAL PENETRATION
Virtual sports are gaining popularity globally, with Europe leading due to strong betting infrastructure and digital adoption, particularly in the UK, Italy, and Greece.
As per analysis, by 2024, 12.5% of Europeans will be active in the online gambling business.
Also, North America is growing rapidly after loosening sports betting laws, while Asian markets like China and Japan are starting to adopt virtual sports.
Africa is emerging as a key market, fueled by a young, digital population. Virtual football dominates, alongside other games like horse racing, basketball, and tennis, catering to diverse preferences. The worldwide demand for online football games was estimated at USD 1.8 billion in 2023.
HOW AGE AND LIFESTYLE DRIVE THE MARKET
Demographics play a pivotal role in shaping the virtual ports market. Millennials and Gen Z are the primary demographics driving the industry’s growth, as they are more inclined toward digital-first entertainment formats and value experiences that blend gaming with technology. In contrast, the older generation is slower to adopt virtual sports, though some segments are beginning to engage due to ease of access and curiosity.
Some 62% of Gen Z and 66 percent of millennial sports fans stated they would pay to see a
sporting event in real-time from an athlete’s point of view in virtual reality, according to Research Nester analysts.
Furthermore, 65% of millennial sports fans and 59% of Gen Z sports fans stated they would pay to see a sporting event in virtual reality from the seat of their choosing at a venue.
INDUSTRY LANDSCAPE
The virtual sports market features prominent players such as Inspired Entertainment, Playtech, and Betradar, which are investing heavily in innovations to capture market share. Companies are focusing on enhancing realism through advanced AI, graphics, and motion-capture technology, creating more lifelike avatars and environments that mimic real sports events.
For instance, in September 2024, ASICS announced “DISC,” a revolutionary virtual sport for VR and MR, developed with Meta and m ss ng p eces. This innovative initiative redefines Esports as “Borderless Sports,” promoting physical engagement and mental well-being for a new generation of athletes.
Partnerships with online betting platforms, sports leagues, and media companies are also becoming common, allowing virtual sports providers to tap into an established fan base and create hybrid offerings that blend live sports with virtual content.
According to predictions, the Virtual Sports Market size is estimated to reach USD 19.8 billion in 2024 and is expected to exceed US$141.4 billion by the end of 2037. This growth is anticipated
to occur at a compound annual growth rate (CAGR) of over 17.8% during the forecast period from 2025 to 2037.
Additionally, competitive dynamics are intensifying with the entry of tech startups bringing AIdriven simulations and immersive VR-based experiences to the market. This increased competition is driving product differentiation, enhancing quality, and broadening the scope of virtual sports offerings.
Some of the advantages of virtual sports due to which people are adopting them at wider scale are:
• Virtual sports can be played at home and no travelling is needed.
• No restrictions for time
• Level and competition can be opted easily
• Better for skill improvement
• Some prominent virtual sports launched by companies are;
Recently Belgium’s first virtual biathlon championship was conducted and aim to put sport in spotlight. Also, Olympic virtual series for cycling was conducted from 1st to 24th June in 2021.
WHAT’S NEXT FOR VIRTUAL SPORTS?
The virtual sports industry is undergoing several transformative trends. AI and machine learning and enhancing the predictive accuracy of simulations, making virtual games more engaging and competitive.
Augmented reality (AR) and Virtual Reality (VR) are also beginning to reshape to user experience by providing immersive environments that allow users to feel as though they are part of the game.
Furthermore, in some sports, like football, AI models can forecast game results with over 60% accuracy by examining elements
Virtual Sports Companies
Virtual Cycling Zwift (2.5 million users in 2020)
Virtual car racing AXSIM AX, Samsung KX experience
Virtual golf Xgolf
(According to National Golf Foundation 6.2 million Americans played golf through simulator
Running Medal Dash
Biathlon Cloudflight
like formations, crucial passes, and goals. The usage of these forecasts for game-day decisions and sports betting is growing. Blockchain technology is another innovation that’s gaining traction, especially in regions with a high interest in cryptocurrency. By using blockchain, companies are able to offer secure, transparent betting and even incorporate NFTs (non-fungible tokens) to allow players to own and trade virtual sports assets. Additionally, as environmental concerns grow,
some companies are developing eco-friendly practices by using cloud gaming and virtual platforms that consume less energy than physical sports infrastructure.
The virtual sports industry demonstrates how digital innovation, consumer behavior, and technology create new entertainment formats. As it gains popularity and expands across markets, the sector is set for growth, appealing to investors and enthusiasts globally..
NaaS v VAS
Here comes the new world order
At the start of October 2024, UK operator BT switched on Global Fabric, its Network as a Service (NaaS) platform and, says Paul Skeldon , it could herald a revolution in value added services (VAS)
Everything is a service these days. The latest tangible thing to get an ‘aaS-ing’ are networks. What does that mean? According to AI when asked “what is a network as a service (NaaS)?” it is ‘a cloud-based service model that allows organisations to outsource their networking infrastructure and consume network services on a subscription basis’.
In the real world it describes the provision of network connectivity as a complete end-toend service through a fixed-cost subscription model, encompassing various elements, including hardware, software, management tools, and security features.
Before you yawn and turn the page, NaaS is not some boring networking protocol thing, it is going to revolutionise telemedia VAS, changing it in some profound ways.
For starters, NaaS promises to fundamentally change the
relationship between content and services providers and the networks they rely on to distribute their content.
Essentially renting the network from an operator brings about benefits across everything from cost efficiencies, reduced service deployment times, enhanced security and better data gathering. For users, it delivers better, faster services, quicker on-boarding and savings that can be passed on to consumers. It also leads to easier scalability, both as the user base expands and as the VAS company looks to expand geographically.
Jan Hein Bakkers, Senior Research Director, IDC, explains:
“Organisations realise that the network is a critical foundation for their digital-first and cloudcentric strategies. With the launch of Global Fabric, BT addresses their need to transform their networks. IDC research shows that organisations should
adopt a secure and sustainable platform that provides the flexibility, manageability, scalability, and cost effectiveness that can support the right end-user experience for each application. Communications service providers that can deliver performant connectivity solutions with these attributes will be well placed to succeed.”
Chris Sharp, Chief Technology Officer, Digital Realty, adds: “Global Fabric is a great example of how service providers should be innovating and will offer enterprises new options for connecting to Digital Realty, the world’s largest data centre platform. By building a cloud-centric network and locating its PoPs inside our world-leading carrier neutral facilities (CNFs), BT will be able to offer its customers terrific speeds with low latency while helping them minimise their environmental impact.” Many advantages, so let’s drill down.
CONTENT, DATA AND SECURITY
NaaS can enhance content delivery capabilities for telemedia providers faster and more reliable content streaming through optimised network performance. It also leads to reduced latency and improved quality of service (QoS) for video and audio content. The ability to scale network resources dynamically to handle traffic spikes during popular events or releases is also an advantage.
NaaS also gives service providers and VAS companies a new level of data and insights, as these platforms come with more advanced analytic capabilities.
These offer VAS providers the ability to gain deeper insights into content consumption patterns and user behaviour. This leads to optimised content delivery based on real-time network performance data. It also allows for much improved
targeted advertising and personalised content recommendations.
Security is also crucial for telemedia providers and NaaS can offer improved protection, with access to advanced security features and protocols without significant investment. Regular updates and patches to protect against evolving cyber threats and improved content protection and digital rights management capabilities are also an advantage.
CONTENT DELIVERY AND USER EXPERIENCE
From a content and user experience (UX) point of view, opting to take advantage of a NaaS approach offers some huge benefits.
From a delivery point of view, it gives VAS providers faster and more reliable content streaming through optimised network
performance. It also, looked at the other way, offers reduced latency and improved quality of service (QoS) for video and audio content. Again, this leads to the ability to scale network resources dynamically to handle traffic spikes during popular events or releases.
This leads to what we all want, better user experience (UX). Consistent performance across different devices and platforms, reduced buffering and improved streaming quality through optimised network routing all lead to better experience for user, which naturally keeps them loyal and helps you grow.
Another side to this is that working with a network operator not only gives you access to a better optimised network, but it also helps future proof a VAS business, offering better support for emerging technolo-
gies such as 4K/8K video, virtual reality (VR) and augmented reality (AR) content.
COST EFFICIENCY
This all leads to better services and more loyal customers – customers who keep coming back thanks to the quality of service. It also helps in the more rapid development of new services –especially those that leverage new and emerging tech – which again makes users more sticky. Together this all helps with user acquisition (UA) (see page 1).
But the real advantage it brings, though all these advantages and more, is that it makes running VAS more cost efficient. Alongside having a happier – and growing – customer base, it also shift from capital expenditure (CapEx) to operational expenditure (OpEx) model, reducing upfront infrastructure costs.
The pay-as-you-go pricing
that and ‘aaS’ brings allows for better alignment of costs with actual usage and revenue. It also reduces the need for inhouse network management expertise, lowering operational costs.
Bas Burger, CEO, Business, BT, concludes: “Global Fabric will future proof customers’ connectivity by providing flexibility to ensure they’re always connected so they can always be productive. They’re facing a new wave of digital revolution with AI, IoT and automation driving demand for simplicity and better multi-cloud connectivity.
Customers can achieve better total costs, boost app performance and user experience, all while complying with regulations and mitigating cyber threats. Global Fabric means multi-cloud works better on BT.”
MESSAGING & ENGAGEMENT
RCS world domination? Not so fast
Now Apple is on board, RCS is predicted to explode. But, while it is certain to see strong growth, it isn’t there yet and, as Paul Skeldon points out, there are still some challenges and no. Having Apple on board certainly make the use case for businesses much stronger: now they can reach pretty much everyone. But there is more to RCS than that.
Rich communications service (RCS) business messaging traffic is set to explode in 2025. Now that RCS is built into Apple iOS, it is expected that businesses are going to embrace it with alacrity.
Research by the Mobile Ecosystem Forum (MEF) finds that, in 2024, there was an average 4% increase in the number of users receiving RCS commercial messages across several countries. It found that India led with a 7% increase in RCS message adoption, followed by South Africa, Mexico and Spain with 3% each, and France with 2%. Brazil has an impressive 27% adoption rate for RCS, more than double that of South Africa’s 13%
On average, 15% of smartphone users in the surveyed markets now receive RCS messages. And Apple’s adoption is crucial to its continued growth. According to Juniper Research, RCS traffic will hit 50 billion messages across next year, almost double the 33 billion seen in 2024.
So, what is driving this growth –is it just Apple’s buy-in? Well, yes
RCS in numbers
According to Juniper Research, “basic RCS messages are plain-text messages containing no more than 160 characters, the same as an SMS message. However, basic RCS offers several advantages over brands and enterprises compared to SMS messages. This includes the brand-verification feature, which reassures customers that any message they receive is from the brand and is not a phishing attempt from a malicious source. In addition, the branding feature ensures that the brand is instantly recognisable, and this will improve brand image.”
It is these basic RCS messages that are likely to drive growth and, if adopted by operators who prioritise basic RCS over SMS, price parity will follow.
Beyond basic RCS, there is also the messaging platform’s ability
RCS has been keenly watched as it has slowly grown from a nice idea to actually being on the cusp of surpassing SMS as the messaging channel of choice. Here is how it has grown and changed.
• In 2023, Google reported over one billion monthly active users with RCS enabled
• The RCS messaging market is projected by Future Markets Insight to grow by 16% during 2022 to 2032 and is expected to reach a valuation of US$8.5bn by 2032.
• By the end of 2024, RCS is expected to have a cross-platform reach of approximately 2.5 billion monthly active users, says Omdia
• The United States is expected to account for the largest market valuation of US$ 3.1 Bn by the end of 2032
to offer conversational experiences and add in more richness – such as graphics, branding, multimedia content and even payments – that will really propel next generation interaction through RCS. It is this combination of basic RCS and the more expensive, but far richer, RCS that makes the offer so compelling. Consumer demand for more adventurous messaging that includes voice, video, AI and more (see page 27) is going to slowly shift the dial on what interactive business messaging is all about and RCS gives the foundation for that. The ability to tap into changing consumer habits, as well as using what RCS has to offer to further create user interest in richer messaging is win-win.
NOT A DONE DEAL
While these factors are big boons for RCS and will no doubt drive uptake, there are some caveats.
Apple may well have moved RCS from just an Android platform, but there are still going to be users who have devices too old or non-iOS-non-Android who can’t use it. There is also the
need for a good internet connection, either with 3, 4 or 5G or strong wifi – and again not all consumers have access. Many users in developed markets don’t necessarily have broadband connectivity on their mobile all of the time – just speak to anyone from the UK. This will make regular use of RCS patchy and inconsistent. For those that do have good mobile data access, using RCS could well drive up their data usage, leading to bill shock and/ or slowing operator networks down – something that is already a problem in some markets, just speak to anyone from the UK. For operators, there are still inconsistencies in tracking RCS messages and the subsequent data that that can deliver. There is no centralised way to track RCS open rates and interaction, so working out the ROI on any project is hard.
So, while RCS is on the up – and SMS is on the way down (see page 28) – it may not be game over for other messaging platforms. OTT has a strong user base and a strong user case. And, while rich messaging may look good, is it always what is needed?
MESSAGING & ENGAGEMENT
Next messaginggeneration
While RCS looks like the future of messaging, what consumers want from platforms is changing. Paul Skeldon takes a look at what other things RCS may have to embrace.
Messaging has had quite a time of it across the 2020s. The pandemic elevated everything from SMS to WhatsApp and WeChat to new heights of importance among businesses as they sought new ways to communicate with customers in lockdown.
Post-pandemic that trend has continued and the messaging landscape is very different today to what it looked like in 2019. However, while RCS is set to take off in 2025 now that Apple in on board, what consumers want from messaging is changing just as fast – and, to be successful, rich business messaging, be that RCS or OTT, needs to be aware of these trends.
VOICE MESSAGING
More apps are adding voice features, which make communication more personal and immersive. In some countries, sending voice messages via rich messaging, especially iMessage, has long been established. This trend is likely to continue to grow as the convenience becomes more apparent. Speech-to-text and text-to-speech functions, driven by AI, will also make the interchange between written and audio messaging even more blurred. Factor in live translation and things look really interesting from a voice messaging perspective for brands and consumers.
VIDEO MESSAGING
With GenZ all now communicating via what are essentially video messages on TikTok and particularly SnapChat, the next generation of consumers are
very much going to be video message driven. As with voice, video makes things more immersive and more personalised. The use of AI to create avatar along with the text-to-speech and speech-totext functionality discussed above also points to an exciting nexus of avatars that can speak what is texted and vice versa. There are some really interesting applications for business here waiting to be unleashed across messaging platforms.
AI-DRIVEN PERSONALISATION
As well as creating avatars, parsing speech into text and vice versa and being a chatbot, AI can also analyse data to send personalised messages from businesses to an even greater degree than anyone has so far been able to do. The use of predictive analytics to anticipate future behaviours too can be used to add to this personalisation play. Putting AI behind messaging is going to very quickly revolutionise how people interact with each other and with companies, marketing and content.
NATURAL LANGUAGE PROCESSING (NLP)
NLP allows AI to understand and respond to human language, creating a more interactive experience. This will build on the
above to create services that sit on messaging platforms that can understand who they are talking to, about what and why and respond accordingly. Initially by text and/or voice, but soon with avatars and images. They will also be able to understand context and sentiment, making for even natural interactions across all messaging media.
INTERACTIVE AI
Brands can use a federation of chatbots and AI algorithms to trigger actions at key points in the customer journey. Then businesses can make transactional messages actionable by providing clear options to solve customer needs or frustrations. So, moving beyond help towards helping and selling.
CONVERSATIONAL COMMERCE
Businesses can use messaging apps to drive sales through these conversations. Conversational commerce is in its infancy today, but combining messaging, payments, AI and personalisation will see messaging move from a simple ad on to other ad channels to being a fully-fledged – and possible the major – ad channel brands use. Pulling it all together will see brands be able to appear to market individually to consumers with the exact product they will want to buy at the moment they want to buy it – and offer an easy way to pay. All in one nice interaction that won’t look anything like messaging or ecommerce as we know it today.
João Carlos, Business Unit Director, Go4Mobility
What does you company do?
Go4Mobility is a trusted global provider of telecoms and digital services. Our Value-Added Services offering is designed to help telecom operators and content providers increase revenue by delivering compelling customer experiences supported by seamless payment methods. Through our platform and API, businesses can integrate payment systems such as DCB and PSMS, streamlining the monetisation of digital content globally.
With direct connections to operators and real-time reporting, we ensure secure and compliant payment flows while maximizing customer engagement and conversion rates.
Our VAS solutions cater to a variety of segments, from entertainment to ticketing and donations, offering scalable and flexible tools that drive growth.
Which countries or regions do you feel represent the greatest opportunity for your services in 2024
In 2024, we identify significant opportunities for our services primarily in the European and Middle Eastern markets. While European markets present challenges due to their highly regulated environments, they also offer robust competition for those genuinely committed to succeeding in the industry.
Similarly, the Middle Eastern markets present substantial potential. As these regions
become increasingly regulated, they offer both challenges and opportunities for businesses aiming to establish themselves. As regulatory frameworks mature, we believe that companies willing to adapt and innovate will uncover fruitful avenues for growth and service expansion.
What major factors do you think will impact the future development of mobile payments and which other payment options represent the biggest threat?
The future of mobile payments is being shaped by a combination of technological advances, changes in consumer behaviour and evolving regulations Technologies such as biometrics and NFC are making payments faster and more secure, while consumers, increasingly inclined toward digital solutions, are driving the adoption of new payment methods.
However, competition remains fierce, particularly with traditional methods like credit cards and the rise of wearables, requiring payment providers to focus on convenience, security, and user experience to ensure long-term success.
Partnerships with fintechs and global expansion are crucial for integrating mobile payments into different ecosystems. By collaborating with financial technology companies, payment providers can expand their offerings and better meet
the needs of both local and international markets. Also, digital wallets, for instance, are reshaping the payments ecosystem.
What’s the most effective business model for an mVAS customer acquisition strategy? One key strategy is the “try before you buy” model, which allows users to experience the product firsthand before committing to a subscription. This method not only broadens the user base but also creates valuable upselling opportunities by clearly demonstrating the product’s features and benefits. Additionally, forming partnerships and collaborations with telecom operators and service providers can significantly enhance the reach of our offerings through joint marketing initiatives and bundled packages.
Furthermore, implementing targeted marketing campaigns, personalised promotions, trial periods, and discounts can effectively boost customer acquisition, driving conversion rates and fostering sustainable growth. Together, these strategies create a comprehensive approach that maximizes our potential for attracting and retaining customers.
What action has your business taken to maintain / improve consumer / partner trust?
To foster and enhance consumer and partner trust, our business has implemented a range of proactive measures focused on security and transparency.
We employ advanced fraud prevention techniques, such as blocking malware applications and utilising iframe security, to protect our users from potential threats. These measures are essential for ensuring a safe and reliable experience for our customers.
In the next 12 months what key technical developments or innovations do you feel will have the most positive impact on mCommerce (VAS / mobile payments / marketing)?
A critical focus will be on enhancing technical reliability through continuous testing, monitoring, and optimisation of systems. This proactive approach ensures that services are not only robust but also financially beneficial for all stakeholders involved.
Collaboration with telecom operators will become increasingly vital. By fostering strong partnerships, the industry can more effectively identify and address potential issues in real time, allowing for agile responses that ensure seamless service delivery to end consumers.
This responsiveness will be crucial in maintaining customer satisfaction and loyalty.
Real-time data analytics will provide deeper insights into consumer behaviour, enabling operators to optimise efficiency and build trust.
