Billing in India has been a very simple process when compared to western markets. The concept so far has been two fold: Vendor raises a bill for the amount they deem to have provided service for (correctly or incorrectly). Customers then chose to either, pay (on time or otherwise) or ignore the bill altogether.
As companies become more and more technology savvy in India, it becomes imperative to come up with sophisticated solutions to the billing and collections problem. More importantly, there will be a change in the way companies do business. For example, in the 70’s and 80’s in India people bought homes with their life’s savings. They toiled hard for years and saved up money with the goal of having their OWN roof over their heads, rather than staying in rented accommodation. The opening up of the Indian economy in the 1990’s combined with the availability of credit has gradually changed this BEHAVIOR in people. It has resulted in the average age of the first time home owner going down drastically and more and more people owning the own homes.
This similar type of behavior will soon be seen as companies start to tweak their revenue models to be able to sell their products to a much larger audience. In the technology space, the Apple App store set the ball rolling to revolutionized how million dollar companies got created. No longer were people selling expensive software, but instead charging $1 (or even less in some cases) to customers who were willing to risk this money to try out a product. Then came the monthly recurring fee models where a small amount is charged regularly for the use of a product.
The above mentioned changes will soon become the norm in India where a tech friendly youth has the disposable income to try/buy products and this will help companies reach a much wider audience than they normally could.