Inbank is starting a new business line by offering an innovative subscription service to private customers. Starting from September, the service is available at iDeal.
Piret Paulus, Head of Growth and Business Development at Inbank, comments:
’Inbank's subscription service gives customers access to a new and contemporary way of owning things. Just as consumers pay a certain amount per month for Netflix or Spotify, electronic devices or even scooters and electric car chargers can be used in the same way. Via subscription, consumers can enjoy the latest tech affordably, comfortably, and worry-free. At the end of the subscription period, they can either upgrade the device to a newer model or return it to the merchant.’
’Inbank has been specializing in embedded finance solutions for the past ten years, and we see that customer interest in similar solutions is growing. Compared to financing solutions, a subscription service is one step ahead because in addition to a low monthly payment, it also includes insurance. After the subscription period, the device is passed on to a new user or is recycled, making it a perfect solution for those who care about the circular economy.’
The subscription business model is clearly on the rise worldwide. ’The service is becoming more and more popular among consumers, and Inbank has a lot of potential for developing this line of business. As an embedded finance platform, our ambition is to scale the service to new European markets,’ Paulus added.
Erik Kaju, Chief Product and Technology Officer at Inbank, comments:
’Trends in consumer behavior are indeed changing, and it's driven by a desire to own less stuff, minimize environmental footprint, and reduce fixed costs. We use technology to make this possible. We develop and scale the platform, so that the various stages of the circular economy, risk management, cost efficiency, and seamless user experience are solved efficiently and sustainably. As a result, merchants can now offer their products in a new and better way, while the end customer enjoys a better and notably cheaper alternative to installment payments or device ownership. We build the product in a way that everyone in our team is eager to become the customer’
At the moment, the service can be used at iDeal stores in subscriptions for iPhones, iPads, Apple computers, and watches.
Antti Adur, CEO of iDeal Group, comments:
’The consumer electronics market is facing significant changes in the coming years. We anticipate that a substantial portion, approximately 80%, of electronic device usage will shift towards subscription-based models. This shift is driven by the remarkable convenience and affordability that subscriptions offer. As the monthly payment is nearly 30% lower compared to alternative financing solutions, it’s an especially attractive solution for individuals who value uninterrupted access to the latest technology. Now that new iPhones and Apple Watches are arriving in stores, I’m sure many of them will be subscribed to.’