Consumer lending and pay later platform, Lazypay, today announced that it will allow users to subscribe to online content platforms through its service. According to Pallav Jain, Country Manager, PayU Finance, allowing users to pay later for streaming services through Lazypay will help the company cater to its millennial users.
Jain said about 75% of Lazypay’s user base consists of millennials, and since these users are more comfortable using online streaming platforms than traditional televisions etc, they would like such a service. A survey conducted by Mint last year showed that 48% of millennials stream content online over watching television.
By using Lazypay, users can subscribe to a service like Gaana and instead of paying the streaming platform’s monthly billing cycles, they can pay the bill when Lazypay generates their monthly bill. Since the pay later service is also integrated on Zomato, Swiggy and many other platforms, the bill users get will be a sum total of all the expenses they have made over the month.
Jain said the company has already launched the features on music streaming app Gaana, and video-on-demand platforms ALTBalaji and SonyLIV. While you can’t use Lazypay to pay for Netflix, Amazon Prime Video and Hotstar right now, Jain said the company is interested in working with those platforms as well.
The company wants to expand the pay later option to all subscription-based platforms and is already live on Tata Sky as well.
Having pay later options in online streaming platforms could help companies like Spotify, Netflix other services that depend on their paid revenue models. While the industry has been picking up in India, paid subscription services haven’t done as well in comparison. In fact, Akshat Harbola, Director of Marketing Operations, India, for Spotify recently said that the majority of revenues in music streaming come from ad-driven models, showing that users aren’t yet paying for them. Having the option to subscribe on credit could help raise revenues from paid models.
According to a June 2019 report by Pricewaterhouse Coopers (PWC), the subscription video on demand market is expected to grow at 21.8% CAGR (compounded annual growth rate) toRs. 10708 crore in 2023. The market is currently at Rs. 3,756 crore, according to the same report. India’s music, radio and podcast industry, on the other hand, was worth Rs. 5,753 crore, said the report.
Pay later services like Lazypay have been growing in India. In the two years since its launch, the company has also expanded to EMI on online merchants and app-based personal loans. It currently has over 1 million users in the country with over 2.5 million pay later transactions every month.