TV Executives Select Micropayments as the Payment Type to Watch
European TV operators and content owners looking to alternative payment types, believe micropayments will make a comparative gain in the coming years.
With consumers purchasing online at a more rapid rate, it is clear that there is a vastly reduced fear about purchasing online compared to the early days of the internet. In order to take advantage of this, we are seeing more & more new and alternative payment methods emerging across the TV sector and other industries.
Micropayments & Pan-European Payments
In its recent webinar, MPP Global discussed how TV organizations can support Pan-European payments and offer a more user-friendly experience for audiences.
During the session, research was conducted and found that 50% of companies believe micropayments will make a comparative gain in the next few years. While this type of payment has already come to our attention in the publishing space, it has only partially appeared in TV and is not being fully leveraged.
The opportunity it offers TV companies is the ability to reach out to audiences not yet comfortable with signing up for a month-long subscription. It also enables irregular consumers to purchase content which normally would have required signing up to a subscription, similar to pay-per-view. This offering presents the opportunity to reach larger audiences and grow revenue streams outside of the traditional subscription audience.
Emerging Payment Methods
Another area which raised discussion was the new wallet types we are seeing being launched on the market.
With the likes of Visa, MasterCard and VocaLink launching their own wallet types in competition to PayPal, consumers are going to have more choice. What is worth considering is whether the uptake will be as high when most consumers are comfortable using PayPal, given the security and trust that has been built up, which has amounted to more than 179 million accounts being created to date.
Supporting Consumer Habits
The fears that consumers may have had purchasing online in the early days of the internet are today vastly reduced, whether this is buying a physical product or a digital subscription. All consumers across industries like choice and this is the same with selecting a payment method, so organizations need to offer a range of different methods so that they can reach and support audiences better. You want your audience to not feel restricted and with 50% of webinar attendees believing that micropayments are one of the ways forward, you can do just that.
Giving consumers a choice, whether that is in content, business models or payment methods, is a key way to get them to continue returning to digital services, which will help to drive revenues and reduce churn.