February 18, 2025
Ict

The Growing Subscription and Recurring Payment Market is Driven by Need for Convenience

The subscription and recurring payment market enables consumers to pay for goods and services on a recurring basis without the hassle of making repetitive manual payments. It allows businesses to receive predictable recurring revenue. Subscription-based products and services span across various industries like media streaming, gaming, cloud services, content subscriptions, software as a service (SaaS), fitness memberships and more. Customers value the convenience of subscribing for regular access to content and services of their choice without worrying about multiple individual payments. For businesses, subscription payment collection provides customer retention along with steady revenues.

The global Subscription and Recurring Payment Market is estimated to be valued at US$ 154.05 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The rising adoption of subscriptions across various industries like OTT platforms, productivity software, online learning and others is a major trend. The focus of businesses on providing subscription-based access to consumers drives this trend. Ease of online payments along with options like pay in installments further boosts subscriptions. Emergence of payment gateways specializing in recurring payments also supports this growth. Focus on superior customer experience throughout the subscription lifecycle from sign-up to cancellation is another notable trend among industry players to optimize retention.

Porter’s Analysis
Threat of new entrants: New players entering this market requires high investment in technology infrastructure and partnerships. The market is dominated by few major players who have strong foothold.

Bargaining power of buyers: Buyers have high bargaining power due to availability of various payment options. They can easily switch between providers based on offerings and pricing.

Bargaining power of suppliers: Payment gateways and banks have moderate bargaining power being the major suppliers in the ecosystem. Vendors depend on them for seamless transaction processing.

Threat of new substitutes: Alternate payment methods like digital wallets, cash on delivery pose potential threat. However, recurring payments offer convenience for subscriptions which reduce impact of substitutes.

Competitive rivalry: The market is highly competitive with focus on pricing, convenience and security. Major players continually invest in technology and partnerships to gain competitive edge.

Key Takeaways
The global Subscription and Recurring Payment Market is expected to witness high growth.

Regional analysis: The APAC region provides immense opportunities for growth in Subscription and Recurring Payment market. Countries like India, China, Indonesia, and others are witnessing surge in e-commerce and digital content consumption. This favors recurring payments for use cases like OTT platforms, digital newspapers/magazines, and online courses.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it
Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →