The robust growth in internet and mobile penetration has prompted Indians to turn to digital channels for a number of services. However, there is a tendency among Indian consumers to opt for services that offer them greater flexibility when it comes to payments. Worldpay’s latest ‘Future of Digital Payments’ report reveals that digital subscribers in India are happier to commit to long-term services when offered a range of payment options.
The majority of Indian subscribers also indicated that they want to pay only for what they use. However, they are less afraid of committing to a long-term service than their counterparts in Western markets. India stands out as the country that spends more on social media services than any other market. Indian consumers topped Worldpay’s poll as the most likely to buy non-gaming apps, with 40% having recently purchased one. Of those surveyed, 49% of Indian consumers are spending on digital music, followed by 40% on apps and 39% on software.
Stuart Thornton, VP of Business Development in APAC
Stuart Thornton, VP of Business Development in APAC, Worldpay, said, “As consumers become more judicious in online spending, the success of digital content services in India will hinge on content providers’ ability to deliver flexibility and convenience in payments. Our research clearly indicates that Indian consumers are wary of online spending and are less sticky than their peers in Western markets like the UK and Germany.”
Worldpay, in association with Morar Consulting, conducted the survey among 7,069 consumers across India, Japan, China, the UK, Germany, the USA and Brazil in July and August 2015. This research found that:
65% of Indian consumers only want to pay for what they use
31% of Indian consumers say they don’t want to commit to a service long term
53% say subscription billing makes it hard to track spending
48% of Indian consumers are likely to cancel their paid subscription after the first six months
28% have purchased paid social media services
16% of the consumers in India have paid for online dating services
Consumers in India and other emerging markets like Brazil and China are more likely to cancel subscriptions within the first six months (an average of 47% cancel) as opposed to their peers in developed markets of whom around 23% will cancel within the first half year.
Stuart Thornton added, “With some Indian consumers wary of traditional subscription billing models, content providers must offer a range of payment options to keep consumers on board and limit cancellations. The most popular billing model in India is in-app payment, with one-click, straight to bank and micropayments also gaining popularity. As Indian consumers dig deeper into how they are being charged for content, flexible payment options will help providers meet these evolving expectations and ensure their own longevity.”
About Worldpay
Worldpay is a leader in global payments, processing millions of transactions every day. We provide an end-to-end service including card acquiring, treasury, gateway, alternative payments and risk management, all of which can be provided with a single integration to Worldpay. We make global payments simple for many of the world’s leading organisations
Courtesy by www.newsvoir.com
