Discover 4 advantages of selling recurring payment systems

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Have you ever thought about adopting a recurring payment system for your company? Previously limited to service providers, this practice is now also used by those who sell products. All thanks to new digital technologies, capable of connecting companies with their consumers even better.

In this article, we will explain what recurring payments are, what their advantages are, and how you can benefit from this system. Are you interested? Then keep reading!

What is recurring payment?
Recurring payment is similar to the monthly payment system: every month, the customer pays an amount to the company to have access to a certain service.

It is the same mechanism used, for example, by gyms, health whatsapp mexico plans, entertainment services, among others. The customer signs a contract that determines the beginning and end of that cycle, which generally varies between three, six and twelve months.

By implementing this system, the company guarantees a monthly recurrence. In case of termination, the consumer must pay a fine for the early termination of the contract, which prevents the company from suffering unexpected losses.



What are the advantages of recurring payments?
This system offers a series of advantages to the company. Check out some of them!

1. Greater financial security
The main benefit that the recurring payment system offers is financial security: since the consumer signs a contract in which he or she commits to a monthly payment in exchange for that product or service, the company has greater predictability of its income. This also allows for more realistic projections and better planning for the coming months.

2. Reduction of bureaucracy
Another advantage is the reduction of bureaucracy. A simple online system, such as a website, allows consumers to register with their personal data and indicate which payment method they will choose each month — credit card, bank slip or, in some cases, bank transfer — so that the payment is automatically charged every month.

3. Time saving
Since billing is automatic, the company saves time on monthly billing. After all, all bureaucratic procedures have already been completed at the time of signing up! Therefore, there is no need to repeat them every 30 days.

4. Transparency with the consumer
Transparency with the customer is another benefit of the recurring payment system. This is because, in addition to being aware of all their rights and commitments at the time of signing up, they will also be able to consult their statements in the system and check whether or not there are any pending payments.

How can you benefit from recurring payments?
Many companies are adopting the recurring payment system. Those who work with software , for example, can sell monthly subscriptions for premium access to a tool or even sell an annual license, which can be paid in installments on a credit card.

Recurring payments are a solution that benefits both the company and the consumer. Saving time and making it easy to sign up for a subscription are two aspects that make the system an interesting alternative for both parties.