Why Billers Need To Move To A Recurring Payment Method

The traditional billing methods have employed practices, such as cash and cheque payments for a long time. However, such methods are almost no longer tenable in an ever-growing digital landscape. As the global landscape shifts toward a more digital approach, newer payment methods have evolved and business transactions have taken a new shape. With the advent of digital payment methods come ease and convenience for billers, but of all these payment methods, recurring payments are regarded as the holy grail of digital payments.  

According to Zuroa’s Subscription Economy Index report, subscription payment models have grown by over 435% in the last decade. This is a testament to the rise of subscription billing platforms as a progressive and efficient billing solution for businesses. By most indices, the recurring payment method, via subscription billing platforms will continue to rise. To reap the rewards that come from using the recurring payment software, billers need to switch to this payment method. 

In this article, we discuss some crucial benefits of the recurring payment method to prove why billers need to change their payment model.

The Predictability Of Cash Flow

The Predictability Of Cash Flow

The predictability of cash flow is one of the major benefits of the recurring payment method. Recurring payments use automatic billing software to ensure regularity and consistency with payments received by billers. This level of stability for subscription billing platforms also means that cash flow can be easily predicted with a good level of accuracy, allowing you to create a budget and plan your finances ahead of time. This is particularly more advantageous when your business has a high operating cost.

The subscription billing system removes barriers that customers would normally face to making payments which could hinder them and lead to inconsistent business revenue, ensuring that your business enjoys a healthy cash flow.

Traditional one-time transactions don’t do enough to keep revenue flowing. It’s largely dependent on whether customers choose to return or not. Hence, there are lots of fluctuations and uncertainties about revenue as the payment schedule is irregular.  This leads to inconsistencies, instability, and unpredictability in business revenue, complicating the budget and making it hard to make financial plans and projections to grow your business. With the recurring payment platform, the baseline subscribers that billers receive recurring payments from regularly make it easy to gauge business revenue ahead of time. So, there’s stability and predictability which you don’t have with a one-time purchase method. 

Enhancing Customer Convenience And Satisfaction_

Enhancing Customer Convenience And Satisfaction

It’s impossible to overstate the importance of an excellent customer experience in today’s competitive market. A good customer experience encompasses customer convenience and satisfaction and ensures that your business can stand out in a crowded digital marketplace. More importantly, it improves customer retention as it ensures your customers are loyal to you. High customer loyalty means higher purchases and more revenue for your business.  So it’s not only a duty to your customers that you provide them with convenience and satisfaction, it’s also the way forward to increasing your revenue and growing your business

Billers understand that friction in the payment process is one of the biggest inconveniences that customers face with a business, and also a quick way for a business to lose its customers. Hence, recurring billing is a solution that suits both parties and is an effective way to drive customer satisfaction. With the recurring payment software, customers only have to enter their billing information once. Subsequent payments are deducted automatically on the agreed date for each billing cycle.

Recurring payment platforms provide a convenient way for customers to pay for your service continuously without having to do it manually and encounter any friction in the process. This improves their overall experience with your business, ensures they’re satisfied, and inspires loyalty to your business.

Efficiency In Billing And Administrative Processes

Efficiency In Billing And Administrative Processes

Another benefit of recurring billing software is that it ensures ease and efficiency in handling billing and payment-related administrative processes. This means that you’re able to make the most of your time while maximizing your revenue. According to statistics, businesses lose up to 5% of their total revenue through leakage. This is due to a lack of efficient processes. By switching to a subscription billing system, there’s little to no need for manual data entry, and this reduces the risks of human errors, saves time, and improves cash flow.  The streamlined process and overall efficiency that automatic billing software introduces can help your business grow much faster.

Reducing Late Payments And Improving Collections

Reducing Late Payments And Improving Collections

Late payments from customers can lead to several problems for your business. This includes straining your relationship with customers and ultimately affecting your business revenues. Chasing late payments also costs a lot of time and money, so it further affects your cash flow. However, you can improve your payment collection and prevent late payments with recurring payments. Since the payment is debited automatically from the customer’s account when it’s due, it ensures that you don’t have to stress about getting the payment late.

Using a subscription management app ensures that even when there are issues, such as failed transactions, the recurring payment platform also sends a notification automatically to the customers notifying them of the error. This would allow the customer to try a different credit card or fix the problem with their bank. The automatic billing software also allows you to retry a failed transaction automatically, to ensure that you get your payments.  This means that you only require very minimal effort in getting payments and you never have to chase late payments.


As the subscription economy continues to grow in an ever-expanding digital market, traditional billing methods are fast becoming inefficient. The use of subscription billing software instead is an effective way to improve your business revenue. It allows a high level of stability and predictability in your cash flow and improves the efficiency of your billing and payment-related administrative processes. Subscription billing platforms also improve your customer satisfaction and help you reduce late payment.

Considering the advantages of recurring payment for your business, adapting this payment method will drive your revenue up, plug leakages, and help your bottom line in the long run. The use of monthly billing software is also fast becoming a standard practice in many industries and customers now have such expectations for the businesses they patronize.

Switch to recurring payment now!

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