Summary List Placement
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More and more merchants are introducing subscription services to take advantage of consumers’ growing appetite for the services and to reap the benefits of recurring revenue.
Business Insider Intelligence estimates that B2C e-commerce, video streaming, and music streaming alone will bring in over $54 billion in payments volume in the US in 2020, highlighting the market’s value. With additional opportunities in industries like health and fitness, video games, and transportation, there’s ample opportunity for merchants to attract revenue and for subscription solutions providers to add more volume.
But merchants have to be prepared to handle potential pain points resulting from subscriptions’ recurring payments. Subscription payments are defined as payments that recur on a scheduled or usage-based basis for products, memberships, services, and more, offering new and consistent revenue opportunities for merchants.
And because subscription payments see consumers enter their payment information once and have the same account charged in the future, consumers aren’t present to address any problems after that point, potentially causing merchants and payments providers to lose volume that will be difficult to recover.
Several types of solution providers are jumping at the opportunity to help merchants handle subscription payments in order to take advantage of the model’s rise themselves. These firms fall into three groups: payments providers like Stripe and PayPal that already handle merchants’ payments and are offering additional solutions specific to subscriptions; subscription-dedicated solutions providers, such as Ordergroove and Recurly, that don’t process payments but do offer tools that help merchants with many stages of the subscription process, including payments; and merchant platforms, like BigCommerce and Shopify, that offer merchants access to multiple subscription solutions providers or their own suite of offerings. All of these providers have the potential to rack up volume and revenue by becoming merchants’ choice to handle their subscription programs.
In The Subscription Payments Ecosystem, Business Insider Intelligence examines the size of the current subscription payments opportunity and discusses what’s driving its growth. We then evaluate the top types of subscription payments solutions providers, as well as their strengths and weaknesses, before analyzing the subscription payments process and what makes it unique from a standard one-time payment.
Finally, we make recommendations for both solutions providers looking to facilitate subscription payments and attract clients, and merchants that offer subscription products and want to maximize their performances with solutions and efficient payment processes.
The companies mentioned in this report are: ACI Worldwide, Adyen, Amazon, AMC, American Express, Apple, The Atlantic, Automated Clearing House, BarkBox, BigCommerce, Birchbox, Blue Apron, Braintree, Chargebee, Chargify, Discover, Disney, Dollar Shave Club, EMVCo, Fusebill, GoCardless, Global Payments, Grubhub, Harry’s, HBO, HelloFresh, Hulu, JCB, Loot Crate, Lyft, Mastercard, Magento, Mailchimp, MoonClerk, Netflix, Nets, The New York Times, Ordergroove, Pandora, Panera Bread, Patreon, PayPal, PayWhirl, Peloton, PlayStation, The RealReal, Rebillia, …read more
Source:: Business Insider