Digital tune

Mumbai, June 5: A new dimension will be added to online music sales with the introduction of MusicPay ? a payment system developed specifically for this vertical.

The system, which integrates payment through cash, bank transfers and credit/debit cards, will be launched in India in the third quarter of the current calendar year.

At present, MusicPay is negotiating with the Indian Music Industry (IMI) to provide the system to the domestic music business. The IMI has major record companies as its members.

MusicPay CEO Rob Atkin is hopeful of concluding a deal with the industry association soon even as talks are on with banks as well.

But, in a nation where online music sales is considered to be in a nascent stage, how will MusicPay succeed?

Atkin feels limited payment options are throttling online music sales, even though the country has a huge tech savvy population and a burgeoning middle class.

?Here, the payment is largely concentrated on credit and debit cards. There are many people who want to order online but do not have a convenient payment option,? he said. MusicPay plans to plug this deficiency by offering non-card or cash payment options that can expand the reach of the music industry, Atkin added.

The CEO said with credit and debit cards dominating the payment scene, those below 18 years of age are unable to participate in the digital music sales.

?In MusicPay, even those below 18 years can set up their individual accounts,? he said. For such an audience, there are options like vouchers and scratch cards. The company is also exploring the possibility of charging one?s account by paying cash over the counter at banks or in retail outlets.

?With MusicPay, we wanted to make it as easy as possible for the maximum number of people to buy music online. Finding alternatives to credit card transactions with cash, bank transfers and SMS was the key. We also wanted to make it simple for online music merchants ? to have one system that does it all,? Atkin said.