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Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market
Top Payment Methods Currently Used for Subscription Services:
- 43% of consumers use a credit card to pay for a video streaming subscription; 39% use a debit card.
- 37% of consumers use a credit card to pay for a music streaming subscription; 48% use a debit card.
- 55% of consumers use a credit card to pay for a news or magazine subscription; 22% use a debit card.
- 48% of consumers use a credit card to pay for a software subscription; 38% use a debit card.
- 42% of consumers use a credit card to pay for a premium app subscription; 48% use a debit card.
- 41% of consumers use a credit card to pay for a box-of-the-month subscription; 50% use a debit card.
About Report
Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.
“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.
