Digital Banking Pricing & Feature Preferences

Case Study

Digital Banking Pricing & Feature Preferences — UAE

A mobile-first neobank engaged Sapience to validate tiering, pricing, and payment models for a freemium “Standard” plan and a paid “Plus” plan in the UAE’s competitive digital-banking market. The objective was to size acceptable price bands, define baseline versus upgrade features, and select the billing model that maximises upgrade intent—without eroding value.

Objectives

Measure head-to-head plan preference, estimate price elasticity (Van Westendorp), compare monthly versus annual versus lifetime appeal, and prioritise features by perceived value across segments.

Method

Online survey (CAWI), August 2025, n=308 UAE residents (18–45, AED 10k+; Dubai/Abu Dhabi) with recent digital-bank usage. The instrument covered plan duels, PSM, payment-model appeal, and feature valuation.

Key Findings

  • Plan appeal: Both tiers won A/B duels by ~3:1, signalling clear product–market fit for Standard and strong upgrade headroom for Plus.
  • Price bands: Standard PSM ≈ PMC 29 → OPP 34 → PME 45; Plus ≈ PMC 30 → OPP 36 → PME 49. Below ~30 risks “too cheap”; above ~49 triggers rejection.
  • Payment model: Annual and Lifetime edge Monthly on top-box appeal; Annual’s visible savings (~20% vs monthly equivalent) make it the default. Lifetime resonates with youth/heavy users.
  • Feature priorities: Baseline “hygiene” = 24/7 support, zero-balance, fraud protection, smooth transfers/FX. Upgrade drivers = smart assistant, higher-yield savings, vaults/spaces, marketplace, higher limits/lower fees.

Recommendations

  • Package & price: Keep Standard free but frame as “~AED 36 monthly value waived” with fair-use limits and quality cues. Set Plus list around AED 42–45 (promo AED 38–40) to signal value while staying inside acceptance.
  • Make Annual the hero: Lead with Annual (one-click from Monthly); deploy Lifetime selectively for youth/high-usage cohorts.
  • Engineer upgrades: Trigger contextual nudges at transfer/FX thresholds and assistant activation; personalise “what you’d save on Plus this month.”
  • Roadmap for trust & convenience: Prioritise wallet integrations, virtual/disposable cards, faster transfers, and budgeting with anomaly alerts.

Outcome

The engagement delivered defensible price corridors, an Annual-first billing strategy, and a feature map that protects baseline trust while giving Plus concrete, paid-for advantages—enabling disciplined monetisation without discount-led erosion.

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