What is Recurring payments
Recurring payments or Subscriptions are simply automatic payments, where a customer authorizes a service provider/merchant to auto debit fixed amounts at regular intervals as per the decided plan.
EaseBuzz provides an automated, hassle-free platform to the merchants where in they can create recurring payment schedules for their customers, control the billing cycles and get instant alerts on subscription activities. The only thing merchants need to do is – link respective plans to their customers and monitor the subscription related activities.
Let’s take an example to understand this process. Amazon has recurring payment model for its video on demand service, Amazon Prime. The customer can link their Amazon Prime account with Amazon Pay feature and set a payment method for deduction of monthly subscription fee. This will enable Amazon (the merchant) to automatically charge the customer on a monthly basis based on the subscription plan taken by its customer.
EaseBuzz subscriptions allow you to
- Pay for the subscription (Auto debit) – The customer will have to complete an authentication transaction which will be one time, to save his card details. The amount for future payments of his subscription will then be auto debited through the saved details.
- Pay for the subscription (Via Link) – The customers will receive the link where they can view the subscription invoice & pay the total amount.
Here are some of the advantages of Easebuzz Subscription which makes it a preferred choice for recurring payments:
How EaseBuzz subscriptions help the merchants
- More predictable cash flow – Merchants will know in advance the amount of money that will be credited in their account, helping them to make informed decisions and strategies for the future.
- Fewer missed payments – Recurring payments are automated. They will be auto- debited from the customer’s account, ensuring that both time and money will be saved as the merchants won’t have to chase down delinquent bills.
- Reduced processing fees – The recurring payments are online, thus the extra costs associated with paper-based cheques are avoided.
- Higher customer retention – In order to stop future payments, customers must deliberately opt out of recurring billing, which is unlikely to happen on a large scale.
How EaseBuzz subscriptions help customers
- Fewer late fees – Many businesses attach penalties to late bills. Customers can avoid these unnecessary charges by setting up recurring payments in advance. This benefit is especially important for those who travel frequently and don’t always have access to invoices or cheque books.
- Greater convenience – EaseBuzz subscription has an easy-to-use hands-off approach for the customers. By making future payments automated, customers no longer have to log in to their accounts on each and every billing cycle date. Once they set up recurring payments, they can focus on other, more important things.
- Manageable spending – For larger purchases, customers might not have enough money in their bank accounts to buy the products and services that merchants supply. But with EaseBuzz recurring payments, they are able to spread the cost of expensive items over several billing cycles.
- Faster payments and better control – When using paper-based cheques, there is often a delay between the time a payment cheque is sent and the time that cheque is successfully cleared. This processing lag makes it harder for consumers to know how much money is truly in their bank accounts. EaseBuzz recurring payments are both automatic and immediate. Customers know exactly how much money is in their bank accounts at any point in time due to instant deductions.
- Environmental savings – EaseBuzz lets merchants offer their customers electronic payment options that don’t require paper-based invoices or receipts. With recurring billing, all transactions happen digitally and securely.
Here are some interesting statistics for recurring revenue that have been observed in this domain:
- Adobe’s digital media had an annual recurring of $3.7 billion exiting the quarter in 2016, achieving an yearly growth by 20%
- According to Recording Industry Association of America, RIAA’s shipment and statistic reports, in 2016, music streaming had a 57% increase in the revenue as compared to 2015.
- In 2016, Netflix reached 3.6 million user subscription, bringing the subscriber base to 85 million in the third quarter.
For more details, visit https://easebuzz.in/