Global payments provider Paysafe announced on Tuesday its latest research shows that subscription-based payments are set for significant growth, with 27% of consumers globally expect the number of subscription payments they make to increase over the next 12 months.
According to Paysafe, The research surveyed consumers in the U.S., UK, Canada, Germany, Austria, Italy and Bulgaria in April 2020, and revealed that the motivations behind subscription-based payments vary, but mostly center around cost and convenience.
“Subscriptions exist today for a whole host of products and services, from getting washing tablets delivered, to accessing entertainment, to driving a new car every three months. Seen by many as a convenient way to make regular payments seamlessly without returning to the checkout, half (50%) of international consumers today already have at least two subscription payments leaving their bank account every month.”
The research also showed that a significant 44% of consumers agree that subscriptions are better value than other payment options for a similar service or product and just over half (53%) of consumers agree that subscriptions are a more convenient method of paying for goods or services they regularly use.
“46% of people say that they worry that subscriptions can be difficult to cancel and make them feel tied into long-term commitments. Also, being forgetful can be costly, with 35% of consumers admitting overpaying for a subscription service that they have stopped using but failed to cancel.”
Speaking about the research, Daniel Kornitzer, Chief Business Development Officer at Paysafe, stated:
“It is clear from our research that companies currently offering or considering offering subscription-based payments should factor in a high degree of customer flexibility and transparency to their service offering. Do this successfully and companies can simultaneously increase consumer trust and alleviate common pain points often experienced with subscription-based payments, such as consumers overpaying or feeling like they are trapped into a long-term financial commitment.”
Founded in 1996, Paysafe claims to be a leading global provider of end-to-end payment solutions. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions.