Recently, an increasing number of businesses and software service providers have begun to incorporate subscriptions into their business model.
A study by Business Wire, a subsidiary of Berkshire Hathaway, reported a significant finding: The subscription economy has witnessed a growth of nearly 350% in the past seven years. Further, their study also found that the subscription economy has spread to many industries.
In this regard, it becomes important to pick the right subscription payment provider to handle and execute the needs of your company’s subscription model with ease.
This post will list the important factors that companies and firms need to consider before zeroing in on a subscription payments provider of their liking.
5 Things to Consider While Choosing a Subscription Payments Provider
It would be helpful if business owners kept the following things in mind before hiring a subscription payments provider:
There is no one-size-fits-all when it comes to businesses. For instance, businesses that have just started might be catering to a smaller customer base when compared to businesses that have been around for a long time.
While thinking along these lines, it would be helpful if you factored in the possibility of expanding the customer base in the future.
This factor is important because some subscription payments providers don’t have the resources to meet the needs of companies with large customer bases.
Businesses tend to have wide-ranging payment needs: subscriptions, billing, payments that recur over a period of time, etc. If you are a business owner, it would be best to choose a provider who can cater to all your payment needs, thereby streamlining the entire process.
Further, you need to ensure that the provider accepts and processes payments from different currencies. This becomes especially important if your business provides services to an international clientele.
It is common for businesses across industries to upgrade subscription plans and pricing to keep up with changing customer preferences.
This is why you should choose a subscription payments provider who can give you the freedom to alter and expand your plans according to your needs.
When it comes to compatibility, two things become important. First, you need to check for compatibility with the regulations in your country.
For example, if your business is based out of the U.S.A, it won’t make sense to avail the services of a subscription payments provider who operates exclusively in Europe.
Second, you need to check for device compatibility. The market share of mobile payments is estimated to touch $1.31 trillion within the next two years. Therefore, it would be good to hire a provider whose services are compatible with PC and mobile applications.
Businesses should not compromise on this factor. Customers require a secure payment gateway, so you must pick a subscription payments provider who can guarantee the safety and security of your customers’ private data and transactions.
This is also a great way of earning the trust of your customer base.
The right provider can bring a host of benefits to the table that your business can take advantage of.
When choosing a subscription payments provider, keep in mind the five things mentioned above, and try not to compromise on any of them. You will be good to go!
Author Name:Alison Lurie