On 28 September, Bango announced a deal with Telefonica subsidiary, Movistar Mexico. Under this new partnership, the Bango Platform will provide Direct Carrier Billing (DCB) integration services to Movistar. This means greater access to digital content and services for Movistar subscribers and access to potential new customers for merchants connected to the Bango Platform.
This deal was exciting for several reasons:
- Telefonica is a new customer to Bango, a customer we acquired through our recent acquisition of Docomo Digital. Being able to expand this relationship in just 4 weeks since the acquisition completed is a great representation of what we have achieved in such a short time frame. It also illustrates the type of revenue synergy we can create as a result of the acquisition – synergies not accounted for in the forecasts released on 30 August.
- It grows the number of users connected to the Bango Platform. Movistar is the second largest carrier in Mexico with 25.8 million subscribers who will now have access to DCB as a payment method.
- It expands Bango’s reach into Latin America – a high growth market for DCB. Use of alternative payment methods (DCB/Wallets) for e-commerce in Latam is expected to grow from 20.6% share of the market in 2020 to 32.2% of the market by 2024 . This compares with credit cards which represented 36.5% of the e-commerce payments market in Latam in 2020 but is expected to shrink to 28.2% of the market by 2024.
- Partnering with Bango creates a seamless transaction experience and democratizes access to the latest digital services. Movistar Mexico subscribers no longer have to worry about lack of access to banks or credit cards, they can simply place a charge on their mobile phone bill.
- It also brings more payment data into the Bango Platform that can we monetize via Bango Audiences.
This is just one of the things we have been able to accomplish in the short time since the acquisition completed but is an exciting example of what will are able to achieve as the new supercharged Bango!