Simplified operational processes: Businesses that rely on a recurring payment process can be confident that they will receive their payments on time. They can also better predict their cash flow, reduce their billing and collection costs, and automate at least some of their accounting. Ultimately, recurring payments provide merchants with the ability to fully focus on their actual business and product.

Improved customer acquisition: Expensive products scare off many potential customers. Often, they only need certain features or the service for a short time. If product scopes are offered individually – with subscription payments – they are more likely to sign up. Merchants can also set up free trial versions so that their customers can see whether their product or service fits their needs. If this is the case, cyclical billing takes place automatically.

Profitable pricing: if the product or service is used long enough, more revenue is generated than with a one-time payment. By offering subscription payments, merchants can also set up discounts in return for regular payments, meaning the customer is charged more over a period of time than with a lump sum payment, but in smaller installments. This can help merchants attract new customers who may be looking for a good deal.

Strengthening customer loyalty: Recurring payments are convenient and time-saving and can lead to stronger, more lasting relationships with customers than a one-time purchase. The business model offers customers more flexibility. Multiple subscriptions can be made at once if needed. Customers are less likely to switch to the competition.

GDPR compliance: Data protection is one of the key issues in customer data management. Far too often, companies still operate in legal gray areas due to a lack of experience. Their own competencies or a proper handling of sensitive data is often not clearly regulated. Recurring payment software relieves companies of this challenge and ensures legal certainty with tested conformity. However, the benefits of recurring payments do not only affect companies. Subscribers also benefit.

Uncomplicated processing: Convenience for the subscription company and the customers is the most obvious advantage of recurring payments. The customer does not have to repeatedly provide their billing information for routine billing, but can leave their payment details to the merchant.

Increased flexibility: Flexibility is fundamental, especially in B2B, where start-ups or companies moving into new business areas cannot yet estimate which software they need. Cyclically adjustable license scopes give them the flexibility they need. Flexible upgrades and add-ons are also an advantage for companies and subscribers. Customers can test new features for free, companies benefit from the paid addition of new features from their customers previously convinced in the free version.