New research from Adyen, the global financial technology platform preferred by top businesses, reveals that 54% of UAE consumers have already unsubscribed, or are considering unsubscribing, from online subscriptions in the next 12 months. The study highlights key insights into consumer preferences and evolving business strategies.
Currently, consumers in the UAE are subscribed to an average of three services, spending approximately AED 90 per service each month. Subscriptions for film and TV services are the most popular (76%), followed closely by music streaming platforms (62%).
UAE Consumers Reevaluate Subscription Services
Despite the prevalence of subscriptions, many consumers are reconsidering their monthly commitments. According to Adyen, certain subscription categories are at higher risk of being canceled, including music streaming (38%), gym memberships (44%), and food delivery services (36%).
Interestingly, this trend is contrasted by UAE businesses’ intentions: 87% of companies plan to invest in repeat subscription models over the next year. More than half (56%) are set to introduce new subscription services as part of their future offerings.
Meeting Consumer Demand for Enhanced Subscription Services
Adyen’s study pinpoints three main areas where consumers expect improvement in subscription services:
1. Personalized Experiences
While 38% of UAE consumers appreciate the convenience of online subscriptions, personalization is essential. Nearly half (42%) of subscribers would prefer receiving personalized offers, while 29% report they are likely to stay loyal to a service that tailors experiences to their preferences.
2. Fostering Loyalty through Quality Service
With an abundance of online subscription options, consumers in the UAE gravitate towards services that offer exceptional customer support (48%) and easy cancellation/refund policies (43%). Personalized discounts are also valued by 42% of consumers.
3. Flexible Payment Options
Although credit and debit cards remain the top payment choices globally (49% and 57%, respectively), UAE consumers are keen on flexibility. A notable 46% prefer paying via digital wallets like Apple Pay or Google Wallet, while 31% favor direct debit options.
“Success in subscription models goes beyond just getting customers to sign up—it’s about understanding their needs and creating a lasting relationship,” noted Sander Maertens, Head of Middle East at Adyen. “Optimizing the subscription experience, including providing secure and flexible payment options, can greatly enhance loyalty.”
As more UAE businesses seek to expand their subscription offerings, aligning services with consumer expectations will be crucial in securing sustained engagement.