The technology behind every payment choice
Bango is a high margin business with diverse revenue streams.
In recent years, the revenue model has expanded from mostly processing one-off payments for transactions, to repeat revenue for subscription bundling, recurring SaaS fees for platform licenses, as well as revenue from Bango Audiences. The diagram below helps explain each component of the Bango revenue model.
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Payment providers who standardize on the Bango platform for bundling all their third party services are charged recurring SaaS licence fees. These fees are usually contracted for a number of years and are proportional to usage. In most cases, Bango still earns a percentage of EUS from the merchant, meaning upside is not lost.
This could be a one-off payment such as an in-app payment through the Google Play store, a physical good from Amazon in Japan or a virtual good such as a motorway toll payment in the USA. It could also be a repeat payment, such as a subscription service, purchased using DCB, a mobile wallet or as part of a bundled subscription offer. In each case Bango charges a percentage of the end user spend (from <0.5% to 3%).
Bango Payments is the technology that connects merchants with payment providers (mobile carriers, broadband providers, energy bills etc) via several payment methods including carrier billing, digital wallets and subscription bundling. Bango takes a percentage of End User Spend (EUS) for processing these transactions. Growing EUS is a KPI for the business.
Payment data is incredibly valuable and increasingly so under the changing regulatory environment. We extract the vast quantity of data processed by the Bango platform and monetize it using Bango Audiences. The data we use is GDPR and CCPA compliant and kept in an encrypted format.
For use of our Audiences, we charge 7-10% of the overall ad campaign spend. For example, the marketing team of a puzzle game app may choose to spend £100k on marketing their game in Facebook which would allow them to show their advert to 10,000 people. To capture more paying customers, they will use Bango Audiences to target their campaign more accurately. In this example, Bango receives a fee of £7,000-10,000. The fee received does not detract from the revenue the social media platform receives. Bango is paid directly by the marketer.
Primarily used by app developers, Bango Audiences enable marketers to target their adverts at known paying users. The app developer gives us access to their social media marketing campaigns and we focus the campaign on paying users. Bango Audience Days is a measure of the volume of advertising featuring Bango Audiences and is a KPI for the business.
To compensate payment providers (mobile carriers etc) for use of their data, Bango shares a portion of the revenue we receive through Bango Marketplace back with them. This revenue share creates additional stickiness with those customers. Bango also buys in additional 3rd party data, for example credit card data, to supplement our own data sets.