Indian consumers are signing up for digital services but want flexibility when it comes to payment options, says a new report by Worldpay Research. WorldPay is a payment processing company based in UK, US and other countries.
Worldpay surveyed 7,069 consumers across UK, Germany, USA, China, India, Brazil and Japan with Morar Consulting for its study.
According to the study, Indian consumers tend to go for services that offer them greater flexibility around payments and want to pay only for what they use (over 65 per cent indicated this).
“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,” said Stuart Thornton, VP of Business Development in APAC, Worldpay in a press statement.
The survey also shows that over 53 per cent Indians felt that subscription billing makes it hard to track payments and nearly half (48 per cent) are likely to cancel their paid subscription after the first six months.
However India stands out as the country that spends more on social media services compared to any other market. Indian consumers also topped Worldpay’s poll as most likely to buy non-gaming apps, with 40 per cent having recently purchased one.
According to the numbers, 49 per cent of Indian consumers have spent money on on digital music, 40 per cent on apps and 39 per cent on software. Interestingly over 16 per cent of those surveyed have paid for online dating as well. The survey notes that the most popular billing model in India is in-app payment.
The multiple payment options definitely has a ring of truth to it, in the Indian scenario. Many popular apps like Flipkart, Amazon, Paytm, Zomato, etc have more than one payment option within the app. Interestingly popular video-streaming site Netflix just launched in India with only credit-card and a PayPal account as the payment options, although some have managed to use debit cards as well.
Unlike the developed countries such as US, UK where credit cards reign supreme, in India the list of options for payments is long; from Net Banking to cash on delivery to even cash top-ups for digital wallets.
For longer-subscription based services, the credit card-only method might not always be advantageous as not one everyone in India has a credit card, and even the ones who do, are reluctant to trust a service with their card information.
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