According to a new report from Worldpay Research, Indian consumers are signing up for digital services, but want flexibility when it comes to payment options. WorldPay is a payment processing company based in the UK, US and other countries.
Worldpay surveyed 7,069 consumers in the UK, Germany, US, China, India, Brazil and Japan with Morar Consulting for their study.
According to the study, Indian consumers tend to opt for services that give them greater payment flexibility and only want to pay for what they use (over 65% said this).
“As consumers become more savvy in their online spending, the success of digital content services in India will depend on the ability of content providers to offer flexibility and convenience in payments. Our research clearly indicates that Indian consumers are wary of spending online and are less clingy than their peers in Western markets like the UK and Germany,” said Stuart Thornton, Vice President of Business Development APAC, Worldpay in a press release.
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The survey also shows that more than 53% of Indians believe subscription billing makes it difficult to track payments and almost half (48%) are likely to cancel their paid subscription after the first six months.
However, India stands out as the country that spends the most on social media services compared to any other market. Indian consumers also topped Worldpay’s survey as the most likely to buy non-gaming apps, with 40% having recently purchased one.
According to the figures, 49% of Indian consumers spent money on digital music, 40% on apps and 39% on software. Interestingly, over 16% of respondents have also paid for online dating. The survey notes that the most popular billing model in India is in-app payment.
The multiple payment options certainly have a ring of truth, in the Indian scenario. Many popular apps like Flipkart, Amazon, Paytm, Zomato, etc. offer several in-app payment options. The hugely popular Netflix video streaming site has just launched in India with only credit card and PayPal account as payment options, although some have had success using debit cards as well.
Unlike in developed countries such as the US and UK where credit cards reign supreme, in India the list of payment options is long; from Net Banking to cash on delivery to cash top-ups for digital wallets.
For longer subscription based services, the credit card only method may not always be beneficial as not everyone in India has a credit card, and even those who do, are hesitant to trust to a service with their card information.
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