How online education and subscription businesses choose their payment system providers
Data Insight and RBK.money recently published a report on payment system needs and requirements in the following three industries:
- online education
- event tickets
According to Denis Burlakov, CEO of RBK.money, the Russian payment systems sector is ripe for disruption. That said, different industries have their own requirements and are likely to require tailored solutions.
In this summary, we’ll focus on the results for online education and subscriptions. We’ll cover must-have features and factors that business owners consider when choosing a payment system for their business.
Online education companies’ choices for payment systems
Online education segment in Russia
Online education is one of the most rapidly growing segments in Russia. It’s expected to grow by 20% in 2020. Some online education companies, however, have been able to boast of 40 to 300% yearly growth.
The most in-demand type of online education is continuing adult education, including language learning, digital skills, and applied skills.
However, in 2020 online resources for school-aged children have experienced a demand surge as well. In addition to courses and trainings, online tutors are a significant part of this market, with online platforms facilitating online learning for kids.
The two most popular payment methods are either a one-off payment for a specific educational product, or a subscription-based approach. 95% of payments made in this segment are made online.
Payment system requirements for online education businesses
Based on the Data Insight and RBK.money survey results, Russian online education providers need the following features from their payment systems:
- recurring payments or credit options
- ability to return fees for services that were not provided
- cross-border payments
- automated receipts
Online education: key factors considered by businesses
When online education provides are looking for a payment system, the key factors they consider are:
- customer support
- low service fees
- availability of different payment methods
Choosing a payment system for a Russian subscription service
Subscription services segment in Russia
One of the key features of a subscription model is enabling easy-to-execute and convenient recurring payments. Businesses in this industry also need to automate receipts. Especially for tech companies, being able to customize a payment solution is a plus as well.
Russians between 22 and 45 are especially fond of subscription services. As a result, most businesses choose payment systems based on their preferences.
Payment system requirements for subscription-based businesses
Russian subscription-based businesses also need to retain their customers, so convenience and user experience are even more important for these companies. This includes processing speed, variety of payment options, and reliability.
Subscription services: key factors businesses consider
In this case, service fees are not as important as they are for online education businesses.
Reliability and customer support, however, are paramount. In some cases, to make sure that subscribers are not affected by tech glitches, companies even sign up with several payment system providers.
To learn more about consumer preferences for payment options, refer to this Russian Search Marketing post.
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