Subscription-based payments set for significant growth according to Paysafe research
Jul 28, 2020
27% of consumers globally expect the number of subscription payments they make to increase over the next 12 months
London, UK: Subscriptions exist today for a whole host of products and services, from getting washing tablets delivered, to accessing entertainment, to driving a new car every three months. Seen by many as a convenient way to make regular payments seamlessly without returning to the checkout, half (50%) of international consumers today already have at least two subscription payments leaving their bank account every month, with 27% expecting this number to increase in the next year, according to specialised payments platform Paysafe’s recent Lost in Transaction research.
The research, which surveyed consumers in the US, UK, Canada, Germany, Austria, Italy and Bulgaria in April 2020, revealed that the motivations behind subscription-based payments vary, but mostly centre around cost and convenience. A significant 44% of consumers agree that subscriptions are better value than other payment options for a similar service or product. Additionally, just over half (53%) of consumers agree that subscriptions are a more convenient method of paying for goods or services they regularly use.
Among this ongoing surge in demand however, some consumers still have concerns. 46% of people say that they worry that subscriptions can be difficult to cancel and make them feel tied into long-term commitments. Also, being forgetful can be costly, with 35% of consumers admitting overpaying for a subscription service that they have stopped using but failed to cancel.
When it comes to successfully keeping track of subscription payments, the research showed that the overall number of consumers struggling with this is falling slightly, having decreased from 37% in 2018 to 34% in 2020 – based on Paysafe’s ongoing Lost in Transaction research.
“The burgeoning subscription economy is driving traditional pay-per-product companies to move to subscription-based models,” comments 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. Do this successfully and companies can simultaneously increase consumer trust and alleviate common pain points often experienced with subscription-based payments, such as consumers overpaying or feeling like they are trapped into a long-term financial commitment.”
To find out more about Paysafe’s ‘Lost in Transaction’ research, visit Paysafe Insights. Or, to find out more about how Paysafe can help meet your subscription-payment needs, please visit www.paysafe.com/subscriptions.
About the research
Paysafe’s ongoing Lost in Transaction research reports explore and benchmark payment and financial opinions of both consumers and businesses.
Paysafe commissioned Sapio Research to conduct this particular Lost in Transaction study in March and April this year using an online questionnaire. The final results include responses from 8,000 consumers across the UK, US, Canada, Germany, Austria, Bulgaria and Italy (over 1,000 respondents per market).
About Paysafe Group
Paysafe Group (Paysafe) is a leading specialised payments platform and the UK’s largest privately-held payments company. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, card issuing and online cash solutions. With over 20 years of online payment experience, an annualised transactional volume of over US $98 billion, and approximately 3,000 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments.
For further information:
Director of Corporate Communications, Europe & Asia, Paysafe Group
E: Anna.Howard@paysafe.com M: +44 758 596 7772
Manager, Corporate Communications, North America, Paysafe Group
E: Nick.Say@paysafe.com M: +1-514 849-8595