Is your online store not growing fast enough? What is the most appropriate payment integration for it? How do you ensure that your customers come back time and time again?
The answer lies in recurring payments, a technology designed for all businesses to charge customers automatically and regularly. Within the payment ecosystem in the market, we can determine two types: one-time payment and recurring payment. But what is the difference between them? What advantages do they bring to businesses? What is the most suitable system for my eCommerce?
Knowing and understanding payment systems in business is a key point, and opting for one model or another will determine how it works.
Recurring payments: the definition
It is an automated payment made periodically and consists of a direct debit at regular, pre-agreed intervals. This system allows merchants to automatically charge and debit the charge to a credit or debit card that the customer authorises through eCommerce.
Recurring payments are mostly associated with digital or physical services, such as a gym membership, a video or entertainment-on-demand platforms, such as Netflix or HBO. Their main difference with the one-off payment is in the timing, as the one-off payment is paid once go and is related to the sale of goods.
On the other hand, recurring payments may be of different types depending on the timing (fortnightly, monthly, quarterly, and annual) and the means of payment (automatic direct debit, card, or wallet).
Integrating recurring payments into your online store
Would you like to accept recurring payments anywhere in the world? You will find everything you need to make it happen in a single integration.
To integrate recurring payments into your online store, all you need to do is find a reliable payment provider and make it part of your list of payment methods. You will facilitate the process so that the customer only has to sign up for the subscription service without any interruptions.
Do you have a subscription business? Facilitate recurring payments for your products or services, reduce acquisition costs, and let your customers pay with the payment method they prefer and trust.
During the Covid-19 pandemic, subscription sales have soared on platforms such as Netflix, Spotify, or Amazon Prime, a great example of the subscription model. Now, you can also be part of this ecosystem, regardless of whether you sell content, physical or digital products. The subscription sales model is also designed for you and we will tell you why!
The system involves creating an ongoing offer for your most like-minded customers. In other words, those who want to receive a selection of your most outstanding products or contract services monthly. We’ve seen this happen with the sale of cosmetic products, such as Birchbox, and pet products, like Woofbox.
To integrate them, you only need to know these 4 features:
- Payment automation. You can easily integrate the recurring payments feature into your own CRM or ERP.
- Payment in installments without financing. When the card is tokenised, the customer can pay for a product without entering their details every week or month.
- Recovery of abandoned carts. With recurring payments, you can offer the payment of the purchase in installments and recover many of the carts.
- Improved user experience. Not only will you provide greater convenience to the customer, but you will also adapt to their specific needs and offer greater payment opportunities.
The subscription model is a growing trend designed for you!
Benefits of recurring payments in eCommerce
Now that you know what the process of integrating recurring payments into your online commerce involves, we would like to tell you what their main advantages are.
For the merchant:
- You can be sure of receiving payments within the timeframe agreed with the customer.
- It reduces administrative costs and the risk of non-payment.
- It improves cash flows thanks to regular income.
- It increases collection.
- A customer database is generated.
- Services are more scalable.
- It facilitates the estimation of future income.
For the customer:
- Easier to join and leave the system.
- Greater convenience and income control.
- Possibility of accessing discounts.
- Avoiding late fees and reducing unforeseen events.
The advantages of recurring payments are extensive, both for eCommerce and for the consumer. In addition, they allow you to boost sales and create an ideal scenario for business development.
Conclusions on the integration of recurring payments
Think about your customers. They probably do not have much time to devote to paying all their monthly bills, receipts, and subscriptions. So, they may start looking for ways to make their payments automatically, securely, and without having to spend too much time. Like your customers, there are thousands of people in the same situation.
The good news is that if your business offers products and services that need to be charged regularly, you can offer this solution. Best of all, you can start accepting recurring payments without any technical knowledge.
At PayXpert, for example, we help you through the entire setup process, so you don’t have to worry about anything. And it doesn’t matter if you don’t have an online store or a large volume of customers, or if you already have an advanced payment management system and a website. In any case, we adapt to your needs and customise your payment plans without complex developments.
The operation of this payment system is simple. We only need to define a business plan (setting a period and a value to be charged), register your customers (assigning the value and the person’s email address, for example), and define the payment method to create the subscription.
Do you have questions about how recurring payments work? Do you want to know more about the integration process?
Let us know; we’ll be happy to help you.
