News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Subscription Spend Skyrockets in UK: Report

Subscription Spend Skyrockets in UK: Report

As an increasing number of industries come to understand the power of the subscription model, consumers are becoming more willing to take on recurring payments. This is true around the world, but a recent study highlighted the phenomenon in the U.K., where subscription growth in the grocery, connected-car app and healthcare sectors are just a few industries driving more than 89 percent of U.K. consumers to sign up for at least one recurring payment, according to a YouGov survey. The report, commissioned by subscription software provider Zuora, found the verticals that had the most consumers using subscriptions were utility providers (42 percent), fitness clubs (30 percent), video-on-demand services (30 percent) and Amazon Prime (23 percent).

The average adult in the U.K. spent £56 ($74) per month on subscriptions in 2017, triple what researchers found the year before.

“Nearly all of the British population is part of the Subscription Economy. From heating to healthcare, the study proves that the subscription-business model has gone mainstream and consumers have bought into recurring payments,” said John Phillips, Zuora’s vice president of EMEA. “The only way businesses can sustainably maintain relationships with consumers and grow is by moving away from their product-centric mentality and creating long-term brand affinity based around flexible subscription-based services.”

But, doing so carries risks and requires a more sophisticated approach to online payments. From choosing the right payments partners to systematically attacking declines, successfully billing consumers each month requires a different approach than traditional card-not-present payments.

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