Fortumo

Fortumo mobile payment service provider

What is Fortumo

Fortumo is a that enables users to make purchases and payments using their mobile devices. It was founded in Estonia in 2007 and has since grown to become a global company, serving customers in over 100 countries.

Fortumo specializes in providing carrier billing services, which allows users to make payments by charging them directly to their mobile phone bills or deducting the amount from their prepaid mobile balance. This payment method is particularly convenient for users who do not have access to traditional banking services or credit cards.

The company partners with mobile operators around the world to offer carrier billing as a payment option for various digital goods and services, including mobile apps, in-app purchases, online gaming, digital content subscriptions, and more.

By leveraging the existing mobile network infrastructure, Fortumo simplifies the payment process and expands access to digital services for users.

Fortumo’s platform provides merchants and service providers with the necessary tools and APIs to integrate carrier billing into their applications and services. It offers a secure and seamless payment experience, allowing users to complete transactions with just a few clicks or taps on their mobile devices.

Overall, Fortumo plays a significant role in the mobile payments industry, facilitating convenient and accessible payment options for both users and businesses around the world.

The history of Fortumo

Fortumo was founded in 2007 by Rain Rannu, Martin Koppel, and Veljo Otsason in Tartu, Estonia. The company initially started as an SMS gateway provider, offering messaging services and solutions to businesses. However, it soon recognized the growing potential of mobile payments and shifted its focus to become a mobile payment service provider.

In the early years, Fortumo focused primarily on providing premium SMS services, allowing users to make micropayments by sending text messages to specific numbers. This service was widely used for purchasing digital content, such as ringtones, wallpapers, and games.

As the mobile industry evolved, Fortumo expanded its services and started offering direct carrier billing, which allowed users to make payments by charging them to their mobile phone bills. This payment method gained popularity due to its simplicity and convenience, especially in markets where credit card penetration was low.

Fortumo quickly established partnerships with mobile operators worldwide, enabling its carrier billing service to reach a broad audience. It expanded its coverage to over 100 countries, including emerging markets in Asia, Africa, and Latin America.

In 2012, Fortumo received a significant investment from Intel Capital, the investment arm of Intel Corporation. This funding helped the company further expand its operations and strengthen its position in the mobile payments industry.

Over the years, Fortumo continued to innovate and diversify its offerings. It introduced new payment channels, such as in-app payments, which enabled users to make purchases directly within mobile applications.

The company also developed partnerships with various digital merchants and service providers, including app stores, gaming companies, streaming platforms, and digital content providers.

In 2017, Fortumo launched Fortumo Insight, a data analytics and business intelligence platform that provided merchants with valuable insights into user behavior, transaction data, and market trends. This tool helped businesses optimize their mobile payment strategies and improve monetization.

Fortumo has also expanded its services beyond mobile payments. It introduced direct carrier connections for mobile messaging, allowing businesses to send SMS messages directly through mobile operator networks.

Additionally, Fortumo offers mobile identity verification services, enabling secure and seamless user authentication through mobile phone numbers.

How Fortumo works

Fortumo operates as a mobile payment service provider, offering various payment solutions to businesses and users. Here’s a general overview of how Fortumo works:

1. Integration: Merchants integrate Fortumo’s payment platform into their applications, websites, or digital services. Fortumo provides APIs, SDKs, and documentation to facilitate seamless integration.
2. User Initiation: When a user wants to make a payment, they choose the Fortumo payment option provided by the merchant. This could be in the form of a “Pay with Fortumo” button or a specific payment flow integrated into the application.
3. Payment Flow: When the user initiates the payment, Fortumo’s platform handles the transaction process. The specific payment flow may vary depending on the integration and the payment method chosen (e.g., carrier billing, in-app payments).
4. User Verification: For carrier billing, Fortumo verifies the user’s mobile phone number to ensure it is valid and matches the carrier network. This verification step is crucial for security and preventing fraudulent activities.
5. Payment Authorization: Fortumo sends a payment request to the user’s mobile network operator, requesting authorization for the payment. The operator checks the user’s account balance or verifies if they meet the necessary criteria for the payment.
6. Payment Confirmation: Once the mobile operator approves the payment, Fortumo receives a confirmation, indicating that the payment has been authorized. Fortumo then notifies the merchant and user about the successful transaction.
7. Transaction Settlement: Fortumo handles the financial aspects of the transaction, including settling the payment with the mobile operator and processing the payment to the merchant’s account. Settlement periods may vary depending on the agreements between Fortumo, mobile operators, and merchants.
8. Reporting and Analytics: Fortumo provides merchants with detailed transaction reports and analytics through its Fortumo Insight platform. This data helps merchants understand user behavior, optimize their payment strategies, and improve monetization.
9. Customer Support: Fortumo offers customer support services to both merchants and end-users, assisting with any payment-related inquiries, issues, or disputes.

It’s important to note that the specific payment process and user experience may vary based on the payment method, integration, and country-specific regulations. Fortumo’s goal is to provide a secure, seamless, and convenient payment experience for both merchants and users, leveraging carrier billing and other payment channels to facilitate transactions.

Can Fortumo be trusted

Fortumo has been operating as a mobile payment service provider for over a decade and has established partnerships with numerous mobile operators and merchants globally. It is recognized as a reputable company in the mobile payments industry. However, it’s always essential to consider certain factors when determining trustworthiness:

1. Reputation: Fortumo has a track record of working with reputable mobile operators and merchants worldwide. Its long-standing presence in the industry and extensive partnerships indicate a level of trust that has been built over time.
2. Security Measures: Fortumo takes security seriously and implements measures to protect user data and transactions. This includes encryption protocols, secure communication channels, and compliance with industry standards and regulations.
3. Compliance: Fortumo adheres to legal and regulatory requirements in the countries where it operates. Compliance with regulations such as data protection and anti-money laundering demonstrates a commitment to maintaining high standards.
4. Customer Support: Fortumo provides customer support services to both merchants and end-users. A responsive and reliable support system is an important aspect of trust, as it ensures that any issues or concerns can be addressed promptly.
5. Industry Recognition: Fortumo has received recognition and awards in the mobile payments industry, which further reinforces its credibility and reputation.

While Fortumo is generally regarded as a trustworthy company, it is always recommended to conduct your own research and due diligence before engaging in any financial transactions. Consider factors such as the specific terms and conditions, user reviews, and the reputation of the merchants you interact with via the Fortumo platform.

Does Fortumo charge a fee

Yes, Fortumo charges fees for its mobile payment services. The specific fee structure may vary depending on factors such as the payment method, transaction volume, country, and specific agreements with mobile operators and merchants.

Fortumo typically operates on a revenue-sharing model, where a percentage of the transaction value is retained as a fee by Fortumo. The remaining amount is then distributed between the mobile operator and the merchant. The exact percentage can vary and is typically agreed upon between Fortumo, mobile operators, and merchants.

The fees charged by Fortumo cover various aspects of the payment processing, including technical infrastructure, transaction settlement, security measures, customer support, and other operational costs associated with providing mobile payment services.

It’s important for merchants and businesses to carefully review and understand the fee structure provided by Fortumo before integrating their services.

Additionally, the fees may differ based on the specific payment methods utilized, such as carrier billing, in-app payments, or other payment channels offered by Fortumo.