Subscription billing - MPE Special

No matter the type of merchant – online or offline,
B2B or B2C, every business is working on controlling
and reducing churn to ensure a stable customer base
and predictable cash inflow. This task can become a
challenge of massive proportions if the business model
of this merchant is based on recurring payments. And
why is that?
Recurring payments are a win-win for both sides as
they allow consumers to easily and effortlessly plan
their expenses, and in return help merchants smooth
out their revenue stream and ensure long life-cycles.
Moreover, as reported by The Economist Intelligence
Unit, consumer demand for new consumption models
– subscriptions, sharing or leasing - is hitting the roof
at over 85%. In a world where online purchases for
goods and services are dominating, businesses have
to find ways to ensure seamless online purchasing
experiences. With that in mind, offering recurring
payments and subscription options can help lead the
way to a necessary change.
Moreover, the advent and uptake of eCommerce also
means cross-border sales now represents one of the
biggest opportunities available to merchants around
the globe. With the accelerating shift to subscription/
new consumption models, companies who want to
grow their business or remain leaders in their industries
will increasingly explore cross-border opportunities,
especially in high-growth markets such as LATAM and
India.
A pressing issue to take into consideration is involuntary
churn: a worry for any subscription-based business.
What is specific for high growth markets is that when
we look into a terminated subscription because of a
payment issue in those markets, the problem does not
only come in the form of fraud, expired or lost cards.
In some cases, subscriptions could be cancelled and
payments could not be going through if the preferred
method of payment of customers is not supported by the
merchant, resulting in unnecessary cancellation, even
if the consumer might still want the product or service.
Merchants should ensure their payment processor can
offer a strong solution for subscription business models.
MATTHIAS SETZER
Chief Commercial Officer at PayU
Matthias joined PayU as the Chief Commercial
Officer in October 2016. In this role he is
responsible for PayU’s cross-border business,
global sales, key accounts, strategic
partnerships and marketing & PR. Before
joining PayU, he worked with PayPal for over
12 years in various roles, most recently as
their Senior Director Strategic Partnerships &
Biz Development EMEA, based in Luxembourg.
Matthias holds a Masters degree from WHU in
Vallendar, Germany.
PAYU
PayU uses its payments heritage and expertise
to deliver financial services in emerging
markets. Our local operations in Asia, Central
and Eastern Europe, Latin America, the Middle
East and Africa enable us to be experts in these
countries and provide the best solutions for
the local market. PayU is the leading online
payment service provider in 16 high growth
markets, dedicated to creating a fast, simple
and efficient payment process for merchants
and buyers. Our 250+ payment methods and
PCI certified platforms are designed to meet
every consumer’s needs. The markets in which
PayU operates represent a potential consumer
base of nearly 2.3 billion people and a huge
growth potential for merchants. PayU has more
than 1,800 payment specialists based in these
local markets supporting PayU’s 300,000+
merchants and the millions of consumers
making online payments.
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