Subscription Manager – Simplicity and Convenience in a Booming Subscription Economy
Subscription services are on the rise, redefining the way consumers purchase goods and services whilst offering unparalleled convenience. As these services continue to grow in popularity, financial institutions face the challenge of developing services that continue to support consumers - managing their recurring payments in a clear and transparent manner.
From streaming services to meal kit plans, subscriptions services have become integral to daily life, aligning with the broader trend of the digitization of payments. A recent Visa report revealed that 63% of surveyed consumers are comfortable with a future that relies entirely on digital money . This comfort with digital transactions is driving the widespread adoption of subscription services, as consumers seek the convivence and ease of automated, recurring payments.
Subscription services offer discounts, enhance convenience and allow for the customization of products – all priorities for the contemporary consumer. They also provide perks such as next-day delivery and streaming video on demand (SVoD), driving wider adoption of subscriptions in the digital economy. Taking SVoD as an example, subscriptions across the Middle East and North Africa, Sub-Saharan Africa and Eastern Europe are expected to double by 20292.
As a result, the global subscription services market is projected to reach an impressive valuation of $409 billion by 20253. However, with this growth, financial institutions must develop new services to keep abreast of consumer demand for safe and secure digital payments.
While consumers appreciate the convenience and savings subscription services can provide, managing numerous subscriptions can be daunting. Recognizing this challenge, Visa has identified the need for payments solutions that help streamline recurring payments and has responded with Subscription Manager.
Subscription Manager offers a comprehensive set of digital tools designed to help issuers offer a better digital experience to their cardholders, allowing for easy review and management of all the subscription services a cardholder is signed up to. Moreover, it supports Visa’s overarching efforts to empower consumers and give them control over their subscriptions.
"The tremendous growth we’ve seen in merchant subscription services can add a significant layer of complication to managing our finances, with negative consequences such as unnoticed or erroneous charges. Visa's mission is to streamline this journey, ensuring cardholders are enabled to effortlessly monitor their subscriptions”, said Godfrey Sullivan, Head of Product, Solutions & Digital Partnerships, CEMEA, Visa.
Managing these services more effectively will have an impact not only on the consumer but also issuers and acquirers. By reducing chargeback payments, minimizing disputes and lowering call center volumes, Subscription Manager will help companies across the digital economy cut costs. Acquirers will also benefit from fewer payment authorization declines and the standardization of stop payment instructions.
With the subscription economy increasingly influencing consumer spending, banks are being called upon to deliver solutions that simplify the handling of ongoing payments. By adopting these innovations, financial institutions can maintain their relevance, offering value-added services that align with consumer demands, enabling simple and transparent payment management, and securing customer loyalty.
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1Juniper Research, Subscription Economy Future Strategies & Market Forecasts 2022 – 2026
2Visa, In a booming subscription economy, consumers are looking to their banks for help in managing their recurring payments
3Juniper Research, Subscription Economy Future Strategies & Market Forecasts 2022 – 2026
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