Subscription and Recurring Payment Market, By Type (Fixed Pricing Model and Variable Pricing Model), By Component (Services and Payment Platform), By End User (Media & Entertainment , BFSI, Healthcare, Telecom & IT, Government and Education, Retail, Others), By Geography (North America, Europe, Asia Pacific, Latin America, Middle East)

Published In : Dec 2023

Code : CMI6186

Pages :160

Formats :

Excel and PDF

Industry : Information and Communication Technology

Subscription and Recurring Payment MarketSize and Trends

Global subscription and recurring payment market is expected to reach US$ 225.41 Bn by 2030, from US$ 137.96 Bn in 2023, exhibiting a CAGR of 7.2% during the forecast period. Subscription and recurring payments refer to automated billing cycles where payments for products or services are deducted directly by a merchant on a preset scheduled basis. It provides predictable recurring revenue streams for merchants. Global subscription and recurring payment market is segmented by type, component and end-user. By component, the market is segmented into services and payment platform. Payment platform remain the most widely used payment method, owing to the high adoption of debit and credit cards globally.

Global Subscription and Recurring Payment Market- Trends

- Integration of Recurring Payments with ERP Systems - The integration of recurring payments with Enterprise Resource Planning (ERP) systems is a growing trend in the subscription and recurring payment market. This integration allows businesses to automate their billing processes, reduce manual errors, and improve cash flow management. ERP systems are business process management tools that can be used to manage information across an organization. When integrated with recurring payment systems, they can help to streamline and automate the billing process. This can be particularly beneficial for businesses with a large number of subscribers or those that offer a variety of subscription options. For instance, DCKAP Inc., a digital commerce solution provider, offer ERP system that help to integrate recurring payments with ERP Systems.

- Adjacent products and services upselling - Adjacent upselling through subscriptions has strong potential in many industries. For subscription services like video or music streaming, upselling additional related content or experiences can boost lifetime customer value. For example, a streaming service could offer live concerts, behind-the-scenes documentaries, or exclusive merchandise to their subscribers. Bundling multiple services together into one subscription package makes it easier for customers while generating more recurring revenue per customer. International development data underscores substantial opportunity in this area. According to UN projections, over half the world's population will live in urban environments by 2050, with mass migration to cities ongoing across Africa, Asia and Latin America. As populations concentrate in large metropolitan areas, on-demand and subscription-based services are filling critical needs around transport, housing, healthcare and education. Integrating related products and services via a unified subscription model provides immense convenience value for these new urban residents. It also drives higher retention and lifetime spend for the businesses involved.