How to handle recurring transactions in a global economy
However, if your business operates a recurring payment model, offering APMs can often present complex challenges. Here we look at how to overcome these.
With growth comes complexity
According to our research, APMs have now overtaken traditional payment methods, such as credit and debit cards.
One reason for this growth is that they offer a quick and easy transaction process. But, if businesses are to take advantage of this trend, it’s important they understand how implementing new payment methods actually works for the consumer.
In the case of the Subscription Economy®, businesses need to offer relevant payment methods in each market while making the process of payment as seamless and effortless as possible.
Consumer preference is evolving towards a long-term, value-based relationship with businesses instead of a traditional single-purchase model. And globally, new types of billing models are growing in popularity such as subscription, account on file, micro-payments and personal information in return for goods and services.
Subsequently, over 50% of companies are adapting their pricing models in response to these changing preferences.
Although recurring transaction models can offer significant opportunities for businesses to enhance the individual customer experience and maximise the lifetime of a customer, the complexities associated with processing recurring transactions via alternative payment methods can severely impact business growth.
So how can companies take advantage of both the subscription economy and the need for seamless payments?
A combined solution
There are some current workarounds to these challenges.
We’re working with some alternative payment providers, such as China UnionPay, Alipay and others in Europe, to support ‘single-click’ enablement and allow for capture and tokenisation of card details at sign up.
Opting for some of the larger eWallet providers such as PayPal, Alipay and Yandex can help to capture more of a domestic market and minimise the challenge of an absence in standards and system capabilities.
If your business is looking at adopting global recurring transaction models, then help is at hand! We’ve produced a handy tip-sheet – which you can download here.
And also, keep an eye out for our whitepaper: ‘Shift happens – what’s next?’