The technology behind every payment choice
Bango is a high margin business with diverse revenue streams.
In recent years, we have moved from receiving mostly one-off payments for processing transactions, to receiving recurring revenue for subscription bundling & platform licenses, as well as revenue from Bango Audiences. The diagram below helps explain each component of our revenue model.
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In some cases, in addition to processing fees, customers who standardize on the Bango platform for all their third party bundling services are charged licence fees. These fees are usually contracted for a number of years and are proportional to usage. Crucially, in most cases we still earn a percentage of EUS from the merchant, meaning upside is not lost.
This could be 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. In each case we charge 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 routes including carrier billing, mobile wallets and subscription bundling. Bango takes a percentage of End User Spend (EUS) for processing these transactions. EUS is a KPI for the business.
This model is used primarily for bundled subscriptions facilitated by Bango technology. It could be bundling a Netflix subscription to your mobile phone bill or an Xbox game pass ultimate subscription to your broadband bill. The same as with the single purchase processing fee, we charge a percentage of end user spend (from <0.5% to 3% ). The benefit of subscriptions is that, in addition to improving revenue visibility due to their contracted nature, the spend is also at a higher price point. Bango receives a percentage of the RRP even when the subscription is in a free trial period for the user.
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. In order to target more accurately, they will buy a Bango audience containing the same number of people and Bango will receive a percentage of the £100k. The fee we receive does not detract from the revenue Facebook receives and we are paid directly by the marketer.
Audiences are the product created within Bango Marketplace. Primarily used by app developers, Bango Audiences enable marketers to target their adverts at known paying users. No data is exchanged but rather the app developer gives us access to their social media marketing campaigns and we tailor the ‘lens’ of users the advert will be shown to. We can also use Audiences to help our merchant customers increase their sales. The number of Bango Audience days is a KPI for the business.
To compensate payment providers (mobile carriers etc) for use of their data, we share a portion of the revenue we receive through Bango Marketplace back with them. This gives the added benefit of making Bango a revenue stream rather than purely a cost, providing additional stickiness with those customers. We also buy in additional 3rd party data, for example credit card data, to supplement our own data sets.