For several years now, subscription has completely transformed the way we consume. For goods used both episodically (cars, skiing equipment, etc.) and daily (tablets, computers, software, etc.), we now prefer to pay for use as opposed to ownership.
Subscription model and payment preferences in Europe
The rise of subscription-based commerce provides benefits for both parties involved, from optimising customer lifetime value for the merchant to diminishing the number of “visible” transactions for the consumer.
In order to fully harness the power of this new subscription model companies must re-think their payment procedures and propose new payment means adapted to recurring purchases and the rental of products/ services.
Payment is one step of the customer journey, but it may be considered as the most important, because it is the one providing value. Therefore, from a payment perspective, subscription-based commerce is challenging: amongst the various payment methods (card, e-wallets, credit transfers, direct debits) that are available for digital commerce, which are best adapted to this revamped customer relationship implicating low touchpoints, increased duration and sustainability without friction?
Discover the results of SlimPay and Innopay’s pan-European study on the subscription model from a payments perspective. In addition to analysing and comparing different payments methods’ appropriateness for the subscription-based model, the study also examines the effect of cultural/ local factors on the adoption of the subscription model and payment preferences for paying subscriptions.
Differences and common trends are emerging, get insight into the current state of subscription-based commerce and subscription-based payments in Europe and take advantage of it!