Recurring payments give users easy and quick access to purchase digital goods and services on a subscription basis. By enabling recurring billing, merchants can increase their revenue and improve customer retention rates. Recurring revenue is a big factor in company valuation and it signifies income predictability.
Online recurring billing and subscription payments pertain to a scheduled recurring payment which can happen on a daily, weekly, bi-monthly, or monthly basis; the schedule is entirely dependent on the business model and the merchant. But what are recurring payments for? Recurring payments let merchants bill users and provide invoices on a periodic basis, as well as successfully implement a payment plan for their subscription services.
Paymentwall’s subscription management solution makes subscriptions for different games, apps, and websites possible, even on mobile devices, such as phones and tablets. Online recurring billing allows merchants to set up subscription payments and memberships (best suited for certain types of businesses). Subscription businesses include games, e-magazines, online newspapers, e-learning, music, movie and online TV streaming, software-as-a-service (SaaS), and others.
Why set up recurring billing with Paymentwall
Recurring billing lets merchants calculate the lifetime value of a customer and offer a greater variety of service plans with simple product pricing. By giving users more choices and more flexible payment options, merchants can retain more paying customers.
Users are given a simple and hassle-free shopping experience; merchants can customize their checkout to match the website or application for brand consistency and enhance their users’ experience. Recurring billing solutions are convenient for users because they do not need to reorder the same online good or service each month. And because online subscriptions are contractless, users can cancel the subscription at any time or turn it back on again.
How Paymentwall’s subscription management solution works
Merchants can set up recurring payments, trial subscriptions, discounts, promotions and subscription periods, which can all be configured in the merchant area. Merchants can use Paymentwall’s admin tool to determine price points and the duration for site subscription plans. Once customized online subscription billing has been set up, customers can be automatically charged each billing cycle.
Recurring billing is only possible with payment methods that support it, such as credit cards, certain online bank transfers, and mobile payments in certain European countries. Recurring billing automatically charges the user’s card every month until the subscription expires or until the user cancels the subscription. For alternative payment methods that do not support recurring billing, Paymentwall sends email reminders so users can extend their membership or subscription.
Automatically charge users based on your preferred recurring billing schedule
As an example, if the product length is specified as 1 month, the user is charged every month. The next payment is scheduled on the same day of the next month. If a payment happens on the 30th of January, the next payment is automatically scheduled on the first days of March.
If a user has insufficient funds or a payment fails for any other reason, Paymentwall will make two more attempts (three attempts in total) to charge the user. If all of the attempts fail, Paymentwall will stop the recurring billing. Once the recurring billing stops, it will no longer process an attempt to charge the user for the next scheduled payment.
With proper planning and setting up of the right price points and duration for site subscription plans, Paymentwall’s subscription management solution for digital goods and services would be advantageous for merchants who want to have calculable income.
It’s free to integrate recurring billing and subscriptions for your business. Paymentwall only charges you based on a revenue share from successful transactions. If you would like to implement recurring payments and subscription billing for your business, contact bizdev@paymentwall.com.