Accepting payments is an essential task of any e-commerce business, including of course subscription businesses. Billing subscribers and receiving payments on a recurring basis add a layer of complexity to something that can already be fairly complicated. The world of payments is also tricky—involving infrastructure, complex processes, best practices, and security and compliance—all critical components of recurring billing. It’s somewhat unsurprising then to find out how many companies are unsure of themselves when it comes to payment technology.
A recent report for ACI Worldwide and market research firm Ovum found that 59% of the organizations surveyed, which included leading banks, retailers and billing organizations—were not confident in their ability to drive innovation in their company when it came to payments.
As reported in PYMNTS.com, “over 37 percent of merchants reportedly didn’t expect their company’s payments investment to go above 5 percent. Similarly, billing organizations and transaction banks fall right behind, with 37 and 36 percent, respectively, expecting less than a 5 percent increase.” In other words, companies aren’t confident in their payments expertise and also don’t plan to invest much money in new technology.
Subscription businesses, like all businesses, are seeking to grow, and they need to be nimble and innovative with their subscription plans, promotions, pricing, and payments. They can’t let the mechanics of credit cards and payments technology (for example, the new EMV cards), working with gateways, and ever-evolving rules and guidelines slow them down or, worse yet, keep them from innovating and growing their business. Fortunately, they don’t have to.
Many subscription businesses have learned that subscription billing is a complex undertaking—and probably not their area of expertise. They’ve learned that the best option is to choose a third-party solution made by a vendor that specializes in the ins and outs of recurring billing, payment technology, data security, and other essential subscription management processes.
Recurly helps nearly 2,000 companies manage their subscription business, including processes for billing and payments, fighting fraud, and reducing churn. We have years of experience working with payment gateways, new payment methods, and payments technology. And our customers know that relying on our proven expertise in subscription management frees them up to concentrate on what they’re expert at: running their business, satisfying their customers, finding new ways to innovate and succeed.