Merchants and PSPs have become masters at creating frictionless payments. Just one click and done. Easy. But consumers report a growing sense of subscription fatigue, fear of accidental subscriptions and a concern for their privacy. They want to take back control. This is particularly true for Gen Z and Millennials, which represent key customer segments for the digital industry.
Then there is the shift to online and in-game spending. It makes teaching children about money difficult, and at the same time very important. Parents want to teach children how to manage money responsibly. They need a digital, 21st century alternative to pocket money.
‘Conscious spenders’ are people who want a payment method that gives them or their children access to the digital world, while keeping control of their personal data and budget.
Aplauz is designed for them. With Aplauz, every payment becomes a conscious choice.
Aplauz’s case for ‘conscious spending’ and how the payment method works
Aplauz is a digital credit receipt that you buy at a convenience store, with an amount of your choosing. The money on that receipt can be spent online by using a 16-digit code, which the consumer needs to input at checkout. That’s it – no other information is needed.
It sometimes surprises people that we intentionally introduce some friction before the checkout. But that’s what these conscious spenders are asking for. They want that extra step to help them make more conscious spending decisions and prevent non wanted recurring charges, while still keeping the buying process smooth and simple.
The types of businesses that will benefit from adding Aplauz to their payment options are businesses who want to expand their addressable market to conscious spenders. Our partners often have an advanced approach to payments, have already nailed their seamless card and wallet payments but want to keep innovating.
The main reason to offer Aplauz payments to your customers is customer centricity – giving control to those customers who demand it. The biggest need for Aplauz exists in the gaming and subscription industries, or with businesses that sell digital goods at volume, but we also partner with charities.
Catering for the needs of privacy conscious customers...
Digital citizens can be divided into three big categories. One, privacy-diehards, who are very protective of their privacy. Two, privacy-pragmatists, who consider privacy important but who are willing to provide personal information when they trust the other party. And three, privacy-indifferent, people who don’t worry about privacy at all.
Aplauz receipts carry no private information. That makes them relevant to privacy-diehards, but also appealing to privacy-pragmatists who are interested in a service or product but wary of giving out too much information. We estimate that 8-10% of consumers fall into these categories – and their share is growing, because privacy is a hot topic in the press.
...and customers with subscription fatigue
Clearly, subscriptions have boomed since the start of the pandemic, as new entertainment and retail options have become available. For example, in 2021, UK consumers spent USD 620 per year on subscriptions – up 12 % from USD 552, in 2020. Many businesses have started offering subscriptions for customer convenience, and to build more predictable income streams.
However, a subscription is a commitment, and there is a limit to the number of financial commitments people want to have. Subscription fatigue is reaching that point where someone thinks; ‘I want this game, series, or training, but I do not want to activate another subscription to get it.’. Even Netflix’s recent results point to consumers becoming more careful about signing up to yet another video streaming service.
We think that it should be possible for people to buy and try something for a month without having to commit to a subscription, or the risk of activating one when they forget to cancel.
With Aplauz, we provide customers an easy way to try a new service. If they love your service, they will stay – and appreciate all the more that they were given the chance to try it out. Without that option, a conscious spender would never even try. In that sense, Aplauz is a win-win. Giving customers the option to pay one time without an immediate long-commitment opens up the door to a new segment - the conscious spenders.
Modern parenting and how Aplauz can be used for teaching financial responsibility
Kids born today may never handle physical cash in their lives, or only look at it as an antique curiosity. Instead, they will learn about money, coins, and heart-shaped diamonds in online gaming. The rapidly growing 100 billion+ dollar gaming industry is where children spend part of their lives and money, and parents are wondering how to guide their children’s spending when it’s all digital, happening in a world that they don’t know. Soon the metaverse will amplify that trend.
Aplauz is a safe payment option that parents can give their children. The amount on the receipt is set, so there is no risk they can overspend. Children learn how to consciously spend digital money, in a safe way, with a set budget. It’s like training wheels for digital payments.
We believe that everyone, even at a young age, should have easy, transparent, and fair access to the digital economy. Aplauz makes that possible, with conscious spending.
About Delphine Bos
Delphine Bos is CMO at Aplauz. She is an experienced Marketing Strategist with a passion for building high-profile global brands. In past roles, Delphine led outstanding marketing teams to position and grow the Adyen brand, repositioned SafeCharge as a global technology company and advised tens of B2B tech companies.
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