Subscription based economy and its evolution in India | Podcast

In this episode of PayTechBytes, host Rahul Sethi engages in a fascinating discussion with Ramakrishnan Ramamurthy (Executive Vice President – Worldline India). They delve into the rapid evolution of the subscription-based economy in India and its driving factors.

Ramakrishnan explains how the subscription model has gained significant traction across various sectors, such as entertainment, e-commerce, education, and healthcare. Traditional financial services and the new digital ecosystem drive this growth. Financial services like credit, insurance, and mutual funds have seen substantial growth, contributing significantly to the rise of subscription payments. Increased consumer spending power and the maturing of digital commerce also play crucial roles in this development, with platforms like Netflix showcasing the wide appeal of subscription models.

India's regulatory landscape has been pivotal in supporting the growth of the subscription-based economy. Initiatives like Aadhaar-enabled programs, eMandate, eNach, UPI AutoPay, and eSign ensure efficiency and security in digital transactions, fostering a conducive environment for subscription services. Ramakrishnan highlights how the regulator has established a robust framework, including near-real-time settlements and cost-effective transaction fees, making digital payments highly attractive. The government's push towards a digital-first economy and the convergence of traditional and digital payment models are also critical factors driving this growth. The future of the subscription-based economy in India looks promising, with significant opportunities in converting recurring payments, such as bill payments and education fees, from one-time transactions to subscriptions. This transition leverages India's young population and growing household expenditures, as they align perfectly with subscription billing models. The growth potential is immense, with every household in India typically paying multiple recurring bills and investing in education.

In his closing remarks, Ramakrishnan emphasises India's robust economic growth and increasing disposable income as key factors that will sustain and expand the subscription-based economy. He underscores the need for continual innovation to enhance customer experiences and drive adoption. Ramakrishnan also highlights the importance of viewing the subscription model as a cornerstone for business value propositions, urging businesses to embrace this trend for long-term success.

We hope you found the discussion on the subscription-based economy in India insightful. Stay tuned for the next episode of PayTechBytes. What topic would you like us to explore next? Let us know at marketing.worldlineindia@worldline.com.