Fintech: Free to Paid Model Communications Strategy

• When transitioning to a freemium acquisition model to a paid one, companies need to ensure that users know beforehand the limitations of their free subscription.
• Firms can also successfully communicate the transition by offering improved functionalities.
• They should also be informed ahead of usage limits and other usage level quotas.
• Users should also be informed beforehand of the corresponding levels of support for each access tiers.
• Users should also perceive the value of the product to ensure that they are motivated to pay for access to additional features.
• When asking their clients to transition to a paid service, companies will also need to explain in a direct and convincing manner on why availing of the paid features can boost the client's business.
• If this can't be explained in a simple manner, the company need to determine the best way to structure the model.
• Based on a study, around 12% of B2C fintech firms employ a free trial or freemium model.
• For fintech firms, transitioning to gain-share models need to be explained well to move away from the preception that the fee scheme is not fair for the clients.
• In the fintech sector, the pay-what-is-fair fee model is amenable to many clients.
• This is particularly valid if this scheme is combined with a transparent message that the fees are necessary to enable the company to provide the valuable offerings.
• Fintech firms can also provide comparison on how much more consumers have to pay in the wider market compared to the cost that they charge.

Fintech Firms Revenue Models

•  Digit employs a monthly subscription revenue model where clients "pay-what is fair" based on the solutions that they use.
•  MoneyLion has an internal cross-sell model that lets clients try to free features first.
• The company then offers clients the option to try a premium product.
• Meanwhile, Truebill positions its fees as percentage of savings for its clients.

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