I already have way too many subscriptions
![Too Many Streaming Subscriptions? TV Viewers Sick of Bloated Market](https://storage.googleapis.com/papyrus_images/fe7f8a88e30f07795f48fe82f19bd77e.jpg)
How much do you spend on subscriptions each month?
How long have you been paying?
Go on... punch in the numbers...I'll wait. Oh, and one more question,How many of your subscriptions are for products or services rendered by African companies?
It is a subscription economy right now isn't it? Every where you click someone is there, offering you a free 7 days or 1 month and after that its $4.99 or $9.99 every month after that. Hey, you even get 10% off if you pay for a year! You can even cancel anytime! Wow, where can you get a better deal?
All of North America and Europe, they all go straight for thier wallets and notepads to get those 16 numbers and that sweet sweet CSV code. But here in Africa...we hit the X button. (I agree that is a bit of a reaching statement...indulge me).
The subscription business model has taken the world by storm, offering consumers convenient access to a wide range of products and services through recurring payments. From streaming platforms to software subscriptions, this model has become increasingly popular, touting benefits such as predictable recurring revenue for businesses and flexibility for consumers.
However, the merits of the subscription model are not equally applicable across all regions, particularly in emerging economies where low-performing currencies and economic disparities pose significant challenges. In African countries, the subscription model faces several hurdles that not only threaten its viability but call to question its position as a useful payment model.
Why can't I spend my money?
Between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200 companies. Just under half of these are fintechs, which are making it their business to disrupt and augment traditional financial services. (Fintech in Africa) Why? Because payments is still a big problem for us. For many people in Nigeria, we have to rely on these new fintechs to make cross-border payments. For most people, payments are easier with mobile money. The rise of Opay and Moniepoint in Nigeria have been very interesting to watch. I'm also a huge fan of Mpesa.
Virtual cards are on the rise too because the need for internationally accepted cards is at an all time high. It is clear people don't have the means to make these payments as much as they would like. But even if they did...
![Top 8 Most Well-Funded Fintechs in Africa - Fintech Africa](https://storage.googleapis.com/papyrus_images/29634944ef3a9c7c22a10ecf6b223955.jpg)
Must I pay in $$$?
There is an obvious currency mismatch when it comes to payments in Africa. Most global subscription services price and charge in major world currencies such as the American dollar. Many African countries have regulated forex controls on their currencies, some have even taken some really drastic measures such as the restriction of forex transactions on local cards in Nigeria and Egypt, two of the largest three most coveted markets on the continent.
It also makes this very very unaffordable for most. I have paid a $12 subscription on Setapp for almost one year now and the amount in Naira I pay has more than doubled since I signed up. For a country whose minimum wage is still N30,000, paying N19,200 for one subscription is living an extravagant life!! Did I mention I also have Netflix, Prime Video, Spotify and Icloud+ all grabbing a piece?
I cannot continue to live like this. There seems to be something fundermentally wrong with this. I think it is because I am Nigerian.
Of course I'm a Nigerian. I pay upfront for everything!
For most Nigerians, and I dare say a lot of Africans, we pay upfront for everything we own. Access to credit is still some way off. We just got payday loans and we are making a mess of that already. Our culture, this side of the world, is prepaid. This means that every subscription is competing for a very very finite resource every month. Do I need all those services every month, no. The hassle of starting and stoping a subscription every month is not a headache I will love to deal with.
It gets even messier when you go to entertainment as we still don't have very enforceable anti-piracy laws so for most people, the thought of paying for Microsoft Office (one of the more used softwares on the continent) is just ridiculous. But even if we wanted to pay, we still won't pay full price because we just cannot afford it. So we flock heavily to services and products that either accept cash (not card payment or credit) up front or offer a freemium model.
Some smarter companies have begun to price in local currencies but the gap remains. Mostly because...
![Mobile money in Africa surges as more markets open](https://storage.googleapis.com/papyrus_images/ad53dec6f5f4e8969eb65ce8b68af6d0.jpg)
Not everyone can afford what I can...and I cannot afford very much
The economic realities of many African nations, characterized by high levels of poverty and income inequality, make it challenging for a substantial portion of the population to commit to recurring subscription fees, even if the services are priced in local currencies.
While some companies have made efforts to price their services in local currencies, addressing currency volatility and providing localized payment options, these measures alone may not be sufficient to overcome the systemic challenges faced by African consumers.
![How the Water Crisis Contributes to Poverty in Some African Countries | Cross Catholic Outreach](https://storage.googleapis.com/papyrus_images/1841431cdde6c0839511d330968a6b94.jpg)
So what happens now?
I don't know or maybe I am not sure. I am not trying to sell anything to you but I think the answer lies somewhere between subscriptions and pay-per-use. Perhaps a hybrid approach, combining subscription elements with pay-per-use or micro-transaction models, could provide more accessible and flexible options for African consumers.
Furthermore, leveraging emerging technologies like mobile money platforms and decentralized finance could potentially circumvent traditional payment barriers and enable more inclusive subscription services.
At AyaHQ we are trying to empower more people to think of more Afro-centric solutions tailor-fitted for the African actor using the power of Web3. There is still so much work to do and I am personally excited to see more solutions being built to bridge this payment gap and create sustainable revenue for African businesses while offering the comfort and flexibility subscriptions provide.
Until then, I'll keep canceling my trials on day 29, thank you.
![PSA: Make Sure to Cancel Apple News+ If You Signed Up for a Free Trial After Apple's March 25 Event and Don't Want to be Charged - MacRumors](https://storage.googleapis.com/papyrus_images/a9be5f6c992511e06138dfced27f82de.jpg)
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