Recurring payments. What benefits does it have for business and what is it?
Recurring payments previously were used by cellular operators and banks. Today the technology has become more accessible, and even the owner of an offline store can connect it. Let’s examine what recurring payments are and see what features this function gives businesses.
What are recurring payments
It is a periodic withdrawal of funds from a customer’s account in exchange for access to a product/service. Recurring payments are often called auto-payments. To make it easier to understand how it works in business, here is an illustrative example. There is Yandex Plus subscription from Yandex. Users switch it on by entering their banking data. After that there is an automatic monthly charge and renewal of access to all the services of Yandex. This continues until the subscription is cancelled by the client.
Recurring payments are actively used in different spheres of business: from the sale of software (for example, Adobe) to the gathering of donations from charitable organizations. What are they used for? There are several undeniable advantages.
Time and money savings
Recurring payments help save on service costs and automate regular customer service.
Long term relationships
The customer buying cycle increases with autopayments. Your business can interact more than once with a customer, building a loyalty.
Using subscription payments, you can make cross-sales, meaning you can sell an additional assortment to a customer who is already loyal to the company.
Growing new customers
You can also bring in new customers through recurring payments. For example, build a path where you first sell either a not very expensive product or service, or make a big discount on the first purchase. The next autopay would be 100% of the cost of the product or service.
Although recurrency payments are used extensively, they are not used everywhere. But it is possible to implement them even in offline business: you can place a printed QR-code near your cash register to the link with a subscription. This will give you a significant advantage over your competitors.
Repeat payments have one nuance — complaints from customers about charges. This happens when the customer doesn’t notice the information about the recurring payment. In the case of recurring payments, the client’s consent is mandatory. It can be obtained, for example, by placing information about recurring payments in a prominent place. Or you can add a checkbox when paying. The main thing is for the client to see and confirm that he agrees to automatic debit.
Today, recurring payments can be made in several ways:
- Banking card
Payments can be made through a bank, a payment service or a special module. In the first two cases, you need to invite a programmer to create a billing, which is not very fast and cheap, and installing the module may not work for everyone.
- Web3 wallet
Payments are deducted automatically from the balance of the Web3 wallet. The amount and period of the subscription is predetermined and stored in a smart contract until cancellation.
Web3 wallets are used by a huge number of people, so for businesses it is a valuable and relevant tool that helps to accept funds from literally any corner of the planet. Using this method in the crypto space has become available thanks to 0Xprocessing. This service has been running for two years now, constantly processing feedback, improving and adding features that allow you to get the most out of accepting cryptocurrency payments. Moreover, the integration with 0Xprocessing is free.