Paying periodically and automatically is something we do on a regular basis. It is what is known as recurring payments, which have taken over a myriad of industries, from Netflix to the gym on the corner.
The rise of this payment model is due to the simple registration of customers to a subscription service, as well as the seamless regularity.
Do you have a recurring business model? Would you like to accept subscription payments without any setbacks? PayXpert can help!
Stay tuned and find out all about this business model.
What are recurring payments?
Unlike a one-off payment, recurring payments are also known as subscription payments and refer to a model where the user pays periodically and automatically for a product or service. A one-off payment, however, is a payment where you buy a product and pay for it all at once. It is closely associated with transactions directly related to the sale of goods.
10 benefits of including recurring payments in your business
It is designed for all types of businesses subscribing to products or services, which allows:
- Reducing acquisition costs. It makes it easy for the consumer to subscribe to the service with a convenient, fast and simple payment flow.
- Increasing confidence in your business. It enables customers to pay with their favourite payment methods.
- Speeding up the payment process. You only have to authenticate a payment if it is absolutely necessary.
- Improving the payment experience for your users. You will do it on all mobile devices and with endless integration options.
- Saving time. You will be able to devote yourself to managing your company without having to worry about your customers maintaining their subscription to your products or services.
- Improving cash flow. This is mainly due to the influx of income on a regular basis (fortnightly, monthly, quarterly, or yearly).
- Increasing the average time each customer spends on your website. This will have a positive impact on your positioning and visibility on Google.
- Build a solid database. Thanks to your customers’ subscriptions, your business will gradually build up a solid database.
- Reducing the risk of non-payment. Thanks to the subscription, companies ensure payment for the product or service. And if payment is not received, they are not delivered.
- Flexibility. Accept payments on a monthly, quarterly, or annual basis based on your products and services and the needs of your customers
Discover the right payment platform to become an efficient subscription business!
Types of recurring payments
Within this category, we can find different recurring payments that we want to share with you today. Recurring payments can be classified according to their timing:
- Biweekly payments.
- Monthly payments.
- Quarterly payments.
- Annual payments.
And according to the payment method:
- Payment by card.
- Payment by electronic wallet.
- Direct debit of automatic payments (SEPA).
Now, think about it… what is the most suitable type of recurring payment for your company? It all depends on the type of business, product, and service, but in any case, the recurring payment can be a very attractive option for you.
Accepting recurring payments in a few steps
Usually, these recurring payments are simple and very convenient for customers. They also offer advantages to sellers.
Electronic invoicing helps simplify the payment process, increase cash flow and reduce costs. This is because putting all future payments on autopilot eliminates the need for customers to receive, open, and act on invoices.
Thanks to recurring and electronic invoicing, all new sales can be made automatically, without the need for direct intervention on your side.
- It enables recurring payments without financing.
- It optimises and avoids manual input.
- It recovers abandoned shopping carts.
This payment model can be easily integrated into your own ERP (Enterprise Resource Planning) or CRM (Customer Relationship Management). In just a few steps, you will be able to automate and customise payments, as well as generate your own collection orders or use the dashboard to plan the frequency, amount, and currency of your collections.
And that is not all. It also allows you to schedule recurring charges for the same purchase once the card is tokenised. It is no coincidence that more and more companies are incorporating recurring payments into their abandoned cart recovery strategy. You would be surprised by the results!
When a transaction is unsuccessful, the card may have exceeded its balance limit or some other failure may have occurred. By offering the customer the chance to try again with installment payments, you will be selling much more in recovered carts in a short time.
The reasons are simple. Subscription billing needs much more than recurring payments. Ready to automate collections, online subscriptions, and usage-based billing?
Tell us all your questions, at PayXpert we can help you solve them.
Driving recurring payments into the user experience
You are one step away from accessing a flexible set of customisation options in your stores and making international shoppers feel at home. Doesn’t it sound great?
At PayXpert, we are not just talking about recurring payments, but a long list of possibilities for your business:
- Payment methods your customers know and trust.
- The ability to pay anywhere in all major currencies.
- The latest technology and innovation to enhance in-store experiences.
- Improving business operations using features tailored to your sector.
- Enabling customers to pay the way they want now and in the future.
Are you ready to harness the full power of your online business?
