Street magazines prepare for digital payment
Published: Friday, Dec 8th 2023, 10:10
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Zurich/Berlin (awp): Street magazines are feeling the trend towards digital payment. In Switzerland, they are relying on the Twint payment app and customer loyalty, while German magazines are testing new models.
In German-speaking Switzerland, they are part of the cityscape. They stand at street crossings and in front of supermarket branches, many of them for years: the vendors of the red street magazine Surprise. A loyal regular clientele regularly stops and thinks about the eight francs in cash. But more and more walk past them, muttering "no cash". A trend that could pose a threat to the print-based business model.
This is because the non-profit organization Surprise, which is celebrating its 25th anniversary this year, generates the majority of its income from street sales. Last year, 3.06 million francs of the total income of 5.49 million francs came from booklet sales.
However, this has recently been in decline: in 2022, sales were 6.6 percent down on the previous year. In the last annual report, the publishers of the Swiss street magazine expressed concern about "falling magazine sales" and at the same time "increased and rising production costs".
Cashless payment in vogue
One reason for this is probably the declining importance of cash. This is because Switzerland is undergoing a digital transformation. According to a study by the Swiss National Bank (SNB), cashless payments are becoming increasingly important. Debit and credit cards as well as payment apps are particularly popular in places where people pay on the spot.
According to the survey, younger people in particular are increasingly using digital payment systems. Surprise customers also expressed a desire for online payment options. According to Surprise spokesperson Nicolas Fux, the charitable company has responded and has been working with Twint since last year. This is "a solution that is established among customers", Fux emphasized to the news agency AWP.
However, Twint has not yet gained much acceptance among independent salespeople. This is because they need to have an account and an email address or cell phone number. Most sellers, including homeless people and people with addictions, therefore continue to rely on the "cash in hand" option.
This is generally not a problem for Surprise. "Most customers know their sales clerks, who are always in the same places, and take cash with them," says Fux. The association therefore does not see itself under any immediate pressure to adapt the payment model.
Germany comes up with QR code solution
Meanwhile, neighboring Germany has gone one step further. Since this October, socially engaged people in major German cities have been able to purchase street magazines using a QR code. In addition to an online version of the local street magazine, they also receive digital content and prize draws tailored to Gen Z. The Berlin platform "Stread", which is financed by a charitable foundation, is behind the model.
Stread editor-in-chief Robert Hofmann, who comes from the online magazine Vice, is convinced by this model. "Many street magazines have so far not been aimed at young people," he said in an interview with AWP. "If people are really keen on a medium, they are also prepared to spend money on it," he believes. His medium-term goal is to develop Stread into a "cool" medium that people will actively seek out on the street.
The new model certainly offers potential: not only can digital distribution save costs and paper, it can also increase circulation as required. "We have set ourselves the goal of doubling the existing Germany-wide print circulation of around 400,000 copies by 2025," says Stread. This would mean that the street magazines, in cooperation with the online platform, would reach more people than the Bild newspaper.
Surprise sticks to model
The Surprise association is aware of Stread's offering, says Fux from Surprise. They maintain contact with other German-language street magazines and are generally open to changes.
Nevertheless, Surprise currently sees no reason to supplement the print-only model with an online version, as offered by Stread. "Sales are a form of social interaction. This exchange takes place more extensively with the printed product," says the Surprise spokesperson.
About the organizations
The independent association Surprise has been providing work opportunities for socially disadvantaged people in Switzerland since 1998. It is part of the International Network for Street Magazines (INSP), which has around 100 members from over 30 countries. Surprise magazine is published twice a month and is distributed by around 500 people in German-speaking Switzerland. In 2022, 501,046 issues were sold.
Stread is published by the non-profit foundation Dojo Cares. This was created 10 years ago from the Berlin advertising agency Dojo and is financed by a social tax on agency services. Stread's digital system is currently used by street magazines in Berlin, Frankfurt, Münster, Leipzig and Osnabrück, among others. There are a total of 22 street magazines in Germany.
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