About half of international consumers today already have at least two subscription payments funded by their bank account every month, according to research from Paysafe, and that number is expected to climb. Paysafe’s recent Lost in Transaction research finds 27 percent of consumers surveyed expect the number of subscription payments to increase in the next year.
The research, which surveyed consumers in the U.S., U.K., Canada, Germany, Austria, Italy and Bulgaria in April 2020, finds that the motivations behind subscription-based payments vary, but mostly center around cost and convenience. The study found 44 percent of consumers agree that subscriptions are better value than other payment options for a similar service or product. A bit more than half (53 percent) of consumers said that subscriptions are a more convenient method of paying for goods or services they regularly use.
“ ...it is clear from our research that companies currently offering or considering offering subscription-based payments should factor in a high degree of customer flexibility and transparency to their service offering”
But, consumers also have concerns about subscription payments, with 46 percent of people noting that they worry that subscriptions can be difficult to cancel and make them feel tied into long-term commitments. Being forgetful is another risk. Thirty-five percent of consumers admit paying for a subscription service they have stopped using but failed to cancel.
“The burgeoning subscription economy is driving traditional pay-per-product companies to move to subscription-based models,” said Daniel Kornitzer, chief business development officer at Paysafe. “However, it is clear from our research that companies currently offering or considering offering subscription-based payments should factor in a high degree of customer flexibility and transparency to their service offering.”