Subscription Payment Services: Top 4 Recurring Payment Services Providers

If you are a SaaS business owner, you’ll always want to retain customers and increase loyalty.

You already have a successful product and customer base.

  • But, how would you ensure a streamlined cash flow?
  • How would you ensure the risk of missed or late payment?

That’s where you’ll require subscription payment services for your business. Subscription services ensure that you receive regular automatic payments from your customers. In fact, the subscription payment industry is growing on a large scale.

If we look at the data from Research And Market, the global subscription industry is estimated to grow at a CAGR rate of 16.06% (USD – 14, 521.16 million) by 2027.

Here’s a screenshot that shows how the subscription market is growing from 2021 to 2027.

This blog is for you if you are looking for an end-to-end guide about subscription payment services.

In just 10 minutes, you will learn:

  1. What is a subscription payment service?
  2. How does the subscription payment service work?
  3. How to set up a subscription payment system.
  4. Who are the top providers of subscription payment services?
  5. How to choose a subscription payment service for your business.

First, let’s understand what is the meaning of a subscription payment service.

What is a Subscription Payment Service?

A subscription payment service is a payment service that enables customers to pay for the service on a regular basis such as monthly, quarterly, or annually.

Subscription payments can be a convenient option for customers who want to access certain services on a regular basis.

One example of a subscription payment service is a streaming service like Netflix or Spotify. Customers can sign up for a monthly subscription to access the service’s content, and the payment is automatically charged to their credit or debit card each month.

Another example is a meal delivery service, where customers can sign up for a weekly or monthly subscription and have meals delivered to their doorstep on a regular basis.

Let us move to the most popular list of subscription payments service providers for businesses.

4 Top Subscription Payment Services Providers

Below mentioned are the top subscription payment service providers which you can select for your business as per your requirements for subscription billing.

Logo Subscription Payment Services Provider Capterra Reviews G2 Reviews Number of Customers
Zoho Subscriptions 4.586 reviews 4.541 reviews 10,000+
ChargeBee 4.456 reviews 4.5558 reviews 4500+
Chargify 4.3200 reviews 4287 reviews 1200+
Zuora Billing 3.946 reviews 4258 reviews 1000+

Let’s understand each subscription payment service provider in detail.

  1. Zoho Subscriptions

    Zoho Subscriptions is a subscription billing and management platform offered by Zoho, a software suite provider for businesses. Zoho Subscriptions allows businesses to securely collect recurring payments from customers, automate their billing processes, and manage their subscription-based products and services.

    With Zoho Subscriptions, businesses create and manage multiple billing plans, set up customizable payment pages, and access detailed reports and analytics to help them understand their customers and their payment behavior. Additionally, Zoho Subscriptions integrates with a range of popular accounting, e-commerce, and customer relationship management (CRM) platforms, making it easy to use alongside other business tools and systems.

    Top Features of Zoho Subscriptions:

    • Automatic billing and invoicing
    • Customer self-service portal
    • Detailed reporting and analytics
    • Integration with other Zoho products
    • Detailed dashboard
    • Extensive plan management
    • Dedicated customer portal
  2. Pricing of Zoho Subscriptions

    Billing type Free Basic Standard Professional Enterprise
    Annual fees $0/month

    • 20 subscriptions
    • 1 user
    $49/month

    • 500 customers
    • 3 users
    • 3 automated workflows
    $99/month

    • 2000 Customers
    • 5 Users
    • 10 automated workflows
    $249/month

    • 5000 customers
    • 10 users
    • 10 automated workflow
    Get a tailored price for your requirements
    Monthly fees $0/month

    • 20 subscriptions
    • 1 user
    $59/month

    • 500 customers
    • 3 users
    • 3 automated workflow
    $119/month

    • 2000 Customers
    • 5 Users
    • 10 automated workflows
    $299/month

    • 5000 customers
    • 10 users
    • 10 automated workflows
    Get a tailored price for your requirements
  3. ChargeBee

    Chargebee is a subscription billing and management platform. Considered one of the top SaaS billing software, it provides a suite of tools and services that help businesses automate and manage their subscription billing and revenue operations. It is designed to help businesses streamline and automate their subscription billing processes, allowing them to focus on growing their business.

    This platform is known to help customize payments and offer a self-serve portal that the client can use for their entire customer lifecycle management. The Chargebee sandbox offers a hands-on experience of using the platform before you sign up for the paid version.

    Top Features of ChargeBee:

    • Manage subscriptions
    • Handle customer billing and payment processing
    • Generate invoices and receipts
    • Track revenue
    • Security and compliance to avoid frauds
    • Dunning management and backup payment

    Pricing of ChargeBee

    Billing type Launch Rise Scale Enterprise
    Annually $0/month (for first USD 100k in revenue) $249/month (includes USD 600K revenue) $549/month (includes USD 1.2M/yr revenue) Get a tailored price for your requirements
    Monthly $0/month (for first USD 100k revenue) $299/month (includes USD 50k revenue) $599/month (includes USD 100k revenue) Get a tailored price for your requirements
  4. Chargify

    Chargify is a subscription billing and payment management platform. It allows businesses to easily and securely collect recurring payments from customers, automate their billing processes, and manage their subscription-based products and services.

    With Chargify, businesses can create and manage multiple billing plans, set up customizable payment pages, and access detailed reports and analytics to help them understand their customers and their payment behavior. Additionally, Chargify integrates with a wide range of popular e-commerce and accounting platforms, making it easy to use alongside other business tools and systems.

    Top Features of Chargify:

    • Easy-to-use Interface
    • Multi-gateway support
    • Customer portal
    • Recurring billing system
    • Business intelligence tools
    • Invoicing
    • Recurring billing API

    Pricing of Chargify

    Billing type Essential Growth Scale
    Annually USD 599/month (paid annually)

    Includes 75k/ month of billings +1% on additional billings)

    NA NA
  5. Zuora Billing

    Zuora is a cloud-based software company that provides a subscription billing and management platform for businesses. Being a flexible billing system, it automates recurring payment methods and unlocks long-term opportunities for businesses to build long-lasting customer relationships.

    This software provides customers with self-service portals to manage subscriptions and payment information. The company aims to provide the tools needed to manage and grow its subscription business.

    Top Features of Zuora Billing

    • ACH Payment Processing
    • Activity Tracking
    • Credit Card Processing
    • Dunning Management
    • Recurring billing and Subscription Management
    • Billing Rate Management

Now, let’s understand how you can set up a subscription payment service for your business.

How to Set Up a Subscription Payment Services

For setting up a subscription payment service, you need to create an account with a payment processor or use a pre-existing account with a service like PayPal, or Stripe. You’ll need to provide basic information about your business and its operations, as well as details about the subscription service you’re offering and how you plan to charge your customers.

Here are seven steps you’ll need to follow to set up a subscription payment system:

  1. Choose a payment processor

    A payment processor manages online payments. Some popular options include Stripe and PayPal. Each processor has its own set of features and pricing, so you’ll need to compare them to find the one that best fits your needs.

    You can choose FacilePay as your subscription payment service provider. It is one of the best payment-accepting mobile applications for Android and iOS. This application has received over 1.76K reviews on the Google Play Store along with 100,000+ installations and 4.2 ratings. And, on iOS App Store, this app has 4.5 stars. It is free to download but charges 1.25% for every transaction.

  2. Create an account with your chosen payment processor or service

    Once you’ve chosen a payment processor, you’ll need to create an account with them. This involves providing some basic information about your business, such as your name, address, and contact information. You’ll also need to set up a payment method, such as a bank account or credit card, that the processor can use to transfer funds to you.

    Tip: Offer a variety of payment options, such as credit and debit cards, e-checks, and online payment services like PayPal. This will make it easier for customers to pay and increase the chances of continuing the subscription.
  3. Set up your subscription service and pricing

    Next, you’ll need to decide on the details of your subscription service, such as the type of subscription you’re offering (e.g. monthly, yearly), the pricing and billing frequency, and any additional features or perks that will be included in the subscription. You’ll also need to choose a pricing model, such as a fixed price or a variable price based on usage.

  4. Create a payment form

    Once you have your subscription service and pricing set up, you can use the tools provided by your payment processor or service to create a payment form or button that your customers can use to sign up for your subscription. This form or button will be embedded on your website and will allow customers to enter their payment information and agree to the terms of your subscription.

  5. Embed the payment form on your website

    Once you have your payment form, you’ll need to place it on a page on your website where customers can easily access it and sign up for your subscription service. This might be a dedicated page on your website when a customer visits your site.

  6. Test the payment system to ensure it’s working properly

    Before you start offering your subscription service to customers, it’s important to test the payment system to make sure it’s working properly. You can do this by using a test account or dummy payment information to make a test transaction. This will allow you to verify that the payment form is functioning correctly and that you’re able to receive payment from your customers.

  7. Start offering your subscription service to customers

    Once your payment system is set up and working properly, you can begin offering your subscription service to customers and start collecting payments. You can promote your subscription service on your website and through other marketing channels.

Let’s understand how this payment service works.

How Does Subscription Payment Service Work?

  1. Customers sign up for the subscription and provide their payment information, such as a credit or debit card. The subscription payment service provider will provide a sign-up page or form where customers can enter their payment information and create an account. The service provider also offers options for customers to pay using payment methods, such as PayPal, Stripe, or Apple Pay.
  2. Subscription payment service provider processes the payment by setting up the customer’s account. This involves sending the customer login credentials or a confirmation email with instructions for accessing the service.
  3. The subscription payment service tracks the customer’s subscription information, such as the start and end dates, the payment processing schedule, and the payment method. The provider will automatically process the recurring payments on the decided schedule, using the payment information.
  4. The service provides tools and resources for managing the subscription, such as updating payment processing information, changing the subscription, updating the subscription, or canceling the subscription. This can help customers manage their accounts and make changes as needed.

Now let’s have a look at how subscription payment services can benefit your business.

4 Key Benefits of Subscription Payment Services

Here are the 4 core benefits of subscription management payment services that you can get by using a subscription payment system.

  1. Stabilizes Your Business With Predictable Revenue and Regular Cash Flow

    When any customer signs up for recurring payment services, you are aware of the monthly revenue your business is likely to generate. Managing and calculating the revenue can become difficult when a customer signs up using a one-time payment.

    This can help businesses plan and budget more effectively, as they can anticipate and predict their revenue streams more accurately. However, subscription management is easy, and forecasting your profits is simpler.

    For example, Amazon Subscribe and Save Model

    What does the company offer?
    With Subscribe and Save, you can get your favorite products delivered from Amazon once per month.

    Target customers— Customers who purchase the same product and want to save time by automating the ordering process.

    How does the company take advantage of the subscription model?

    • Subscribing clients get additional discounts on their orders.
    • They also get free shipping on each subscription and the ability to cancel at any time.

    With this subscription payment service, the company can have predictable revenue and anticipate future orders.

  2. Improves Customer Retention with Convenience and Flexibility

    With subscription payments, customers can set up automatic payments, which can be more convenient and hassle-free than making separate payments each time. When you add customers to your subscription billing system, you also offer personalized services.

    Sending out payment reminders, talking to them about new products/services you have launched, and even offering solutions to some common problems can help increase engagement. When you personalize the services to meet your customer’s requirements, they will stay with you for a long while. Eventually, subscription payment methods can reduce the churn rate and improve retention.

    Pro Tip:

    Respond to customer inquiries and complaints promptly and professionally, and make sure that your customer service team is knowledgeable enough to help customers with any issues

  3. Providing Businesses With Valuable Data and Insights

    The subscription payment methods give a holistic view of your transactions and customers. As small business owners, you need more visibility into your customers and their lifecycle stages. The recurring payment platform will give a complete view into the current sales, and people who opted out of recurring payment processing.

    Subscription payments can generate a wealth of data and insights about customers, such as their purchasing habits and preferences. This can help businesses better understand their customer base and make more informed decisions based on this data about marketing and product development. It will help you ensure that customers don’t leave your business and improve your revenue.

  4. Enabling Businesses to Build Stronger Relationships With Customers

    By offering ongoing support and services over the duration of a subscription, businesses can build stronger relationships with customers. This can help businesses retain customers and generate repeat business, as well as foster customer loyalty and advocacy.

    Subscription payments can enable the development of new business models, such as subscription-based services, which can drive innovation and growth in various industries. This can create new opportunities for businesses and customers alike.

  5. Since you have understood the benefits, let’s even take how you can choose a subscription payment service for your business.

    How to Choose Subscription Payment Services for Your Business

    When choosing a subscription payment service, there are several factors you may want to consider to ensure that you find a service that meets your needs and provides good value.

    Some key factors to consider include:

    1. The types of payment methods and options the service offers, such as credit cards, debit cards, or alternative payment methods.
    2. The fees and charges associated with the service, including transaction fees, annual/monthly fees, or other charges.
    3. The security and fraud protection measures the service has in place to protect your business and your customers.
    4. The level of customer support and technical assistance the service provides, such as live chat, phone support, or email support.
    5. The integrations and compatibility the service has with other business tools and systems, such as accounting software or eCommerce platforms.
    6. The flexibility and customization options the service offers, such as the ability to create multiple subscription plans or customize the look and feel of the payment page.
    7. The reputation and reliability of the service, as demonstrated by customer reviews, industry awards, or other indicators of quality.

    This information can be helpful if you compare multiple subscription payment services to see which ones offer the best combination of features, pricing, and support to meet your needs. Here are the top subscription payment service providers for your business.
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    Now that you know how subscription payment service works and even the top providers, let’s answer a few frequently asked questions.

    Frequently Asked Questions About Subscription Payment Services

    1. Which challenges subscription payment services can solve?

      Subscription payment services can solve challenges like

      • Reduces the risk of failed payments by offering automatic payment retries, and alerts for declined payments.
      • Retains customers by offering flexible billing options, and automatic renewals.
      • Protect customer data and comply with relevant laws.
      • Ensures transparency with the growing complexity of the invoicing process.
    2. Which are the most common types of subscription models?

      Here’re the most common 3 types of subscription models which include:

      1. The curation model – Subscribers receive a unique selection of items on a regular basis, tailored to their personal needs and preferences. There’s often an element of surprise with each subscription box too, building a sense of excitement and anticipation for each delivery.
      2. The replenishment model – Often referred to as a ‘subscribe and save’ model, consumers automate the purchase of items to receive replenishment deliveries on a regular basis.
      3. The access model – In this model, subscribers pay a regular fee to obtain attractive member-only perks such as exclusive discounts or early access/discounts to new products.

    Get Started with a Subscription Billing & Payments System

    From this blog, you learned how subscription automatic payments could help businesses know their revenue and improve customer retention. Choosing the right billing platform that supports your goals and aligns with your business strategies is important. Once you have selected the platform, you should set up your merchant account and create the pricing plans that work for your business.

    FacilePay is an incredible recurring billing platform that helps with subscription management and revenue recognition. With an easy-to-setup interface and complete visibility into your billing, it is a platform that enhances your payment structure. Connect with our team to get a free demo and know the best plan for your business.

Rakesh

Written by

Rakesh Patel

Rakesh Patel is the Founder and CEO of Facilepay (vBridge Technologies Inc). He has 28 years of IT experience in business strategies, operations and information technology. He has expertise in various aspects of business like project planning, sales, and marketing, and has successfully defined flawless business models for the clients. A techie by mind and a writer at heart, he has authored two books – Enterprise Mobility: Strategy and Solutions and A Guide To Open311.