Err, this payment doesn’t block ads. It only switches off personalised ads. So, the user is still seeing ads, just not targeted ones. So the site is getting both user’s money plus ad money. And technically, I am not sure how privacy preserving this is because you will still need to create an account which technically leaves you vulnerable to tracking.
Instagram Reels and YT Shorts are very popular in India, especially after the Tiktok ban. Curiously, whilst some Chinese apps are banned, Chinese hardware especially mobile phones are very popular in India.
Since the ban was done after a Sino India border clash, there was little logic as to why Indian users would migrate to other Chinese apps and the void was filled by domestic and international replacements.