4 Business Benefits of Subscription Payments

4 Business Benefits of Subscription Payments

Subscription services have exploded in popularity in recent years. In fact, 81% of U.S. adults subscribe to at least one service, from video streaming and meal prep to razor blades and makeup. The simple business model—with customers making recurring payments and retailers providing a steady stream of products or services—is appealing for both parties for several reasons. 

Here are four business benefits of the subscription payment model. 

1. Attract More Customers

Smaller payments spread out over time instead of one large payment upfront is more attractive to customers because it feels like less of a financial commitment. Subscription payments lower the barrier to entry, which allows more potential customers to purchase your product or service. Customers can also enjoy increased benefits over time as the product or service improves. 

2. Marketing Opportunities

Because your customers have already signed up for a recurring service or product, you can naturally connect with your customers regularly. Sending direct mail or a monthly email newsletter is appropriate because you know they are already interested in what you are selling (plus, you collected their contact information when they signed up). This also results in usage and preference data, which helps you better target your audience. 

3. Increased Revenue through Up-Selling and/or Cross-Selling

The subscription payments model allows businesses to gain customers’ trust over time with continuous contact via marketing materials. This brand recognition and loyalty makes it easier to upsell or cross-sell similar products or services. 

Customers are more likely to upgrade with a business they already have a relationship with since the business has proven to be reliable. 

Click image to enlarge

4. Recurring Billing = Predictable Revenue 

Another benefit of a subscription-based business is predictable revenue. Since customers agree to make payments on a regular basis—typically monthly—businesses can predict revenue because of the steady stream of income. 

To accept automated payments, businesses can use either virtual terminals or integrated software for smooth payment processing. This ensures an easy and secure way of accepting card-not-present (CNP) payments from customers. 

Final Thoughts 

The subscription-based business model is the way of the future. Customers enjoy the convenience of recurring payments in exchange for a steady stream of goods or services, while businesses benefit from things like predictable revenue and ample marketing opportunities.  

You can easily set up recurring billing card payments by using a virtual terminal, like BASYS Processing’s iQ Pro. Contact us today to get started: (800) 386-0711. 

BASYS Processing as a business partner 

Does your current processor understand the unique struggles of your industry? Do they provide great rates and personal customer service? Are they offering solutions to grow your business and being proactive about helping you reduce risk and increase your savings? 

Contact BASYS today to learn more about innovative payment solutions that will save you time and money. We make accepting debit cards and credit cards convenient, safe and affordable. 

BASYS Processing features: 

• A friendly, live voice will answer the phone when you call; no automated phone systems 
• In-house PCI Compliance team to walk you through the process step-by-step, improving security and reducing costs
• Accept payments in person, over the phone or online
• Next-day funding options 

About BASYS Processing 

BASYS Processing provides credit card and debit card processing services, plus solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need.  Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personal Payment Processing. 

Learn more at basyspro.com, and connect with us online at: