The evolution of music consumption: why payment trends matter for the music industry
The music industry is deeply intertwined with how consumers choose to pay. From streaming subscriptions to concert tickets, payment trends are shaping how fans engage with music and how artists generate income. Insights from the 2024 Xero Global Payments Report offer critical takeaways for the global and Australian music industries, revealing how understanding consumer payment preferences can pave the way to success for artists and music businesses alike.
Streaming and subscriptions: the role of digital wallets
The shift from ownership to access—as seen in the rise of platforms like Spotify and Apple Music—has been underpinned by digital payment systems. According to the Xero report, 24% of Australians use digital wallets, with Gen Z adoption nearing 40%. These tools allow fans to seamlessly subscribe to music services, ensuring recurring revenue for platforms and artists alike.
For Australian artists and music entrepreneurs, embracing digital wallets as part of their payment ecosystem can improve fan access. This includes offering merchandise, music downloads, or VIP memberships through wallet-friendly payment options like Apple Pay or Google Pay, ensuring convenience for younger, tech-savvy audiences.
BNPL and big music purchases
High-ticket music purchases, such as festival passes or limited-edition vinyl records, are increasingly facilitated by Buy-Now-Pay-Later (BNPL) services. The Xero report highlights that 31% of Millennials in Australia prefer BNPL, making it a crucial tool for the music industry to maximise sales. By offering flexible payment plans, artists and event organisers can make premium products more accessible, driving higher revenues and deepening fan loyalty.
Virtual concerts and global fan access
The pandemic underscored the importance of virtual performances, with emerging platforms enabling artists to monetise live streams through ticket sales and tipping. Digital payment systems are the backbone of these transactions, and trends like real-time payments—highlighted in the Xero report as a major global shift—can ensure artists receive earnings instantly.
For Australian musicians reaching international audiences, adopting real-time payment solutions can simplify cross-border transactions, reducing delays and fees. This can foster a smoother experience for global fans supporting their favourite artists.
Enhancing the fan experience with seamless payments
Payment convenience significantly impacts the fan experience. The Xero report notes that hidden fees and complex processes frustrate 72% of Australian consumers. For music businesses, transparent pricing and streamlined payment options are more than operational upgrades—they are competitive advantages. Whether it’s selling tickets, merchandise, or exclusive fan experiences, ensuring clear, easy-to-use payment systems builds trust and encourages repeat purchases.
Blockchain and the future of artist revenue
Emerging technologies like blockchain have the potential to revolutionise royalty payments and licensing. Blockchain offers transparency and immediacy, ensuring artists are paid fairly and without delays. Additionally, cryptocurrencies might find a niche in the music industry, especially for global transactions. These trends align with the Xero report’s focus on new payment technologies that prioritise security and efficiency.
Why payment trends matter for music industry success
The 2024 Xero Global Payments Report reveals that consumer payment preferences are shifting rapidly, and the music industry must adapt. By understanding these trends, Australian artists and music businesses can identify ways to optimise revenue streams, expand their fan base, and simplify operations. Flexible, transparent, and tech-forward payment systems are no longer optional; they are essential tools for thriving in today’s competitive landscape.
Paving the way for artists and fans with Xero
As digital payments reshape the music industry, the insights from the Xero Payments Report serve as a guide for artists, venues, and platforms looking to succeed. From leveraging BNPL for big purchases to adopting real-time payments and blockchain technologies, embracing these trends ensures the industry remains agile and consumer-focused. For Australian musicians, staying ahead of these changes can mean the difference between surviving and thriving in an ever-evolving market.