July 25, 2024
Subscription and Recurring Payment
Ict

Subscription and Recurring Payment Market Growth Accelerated by Adoption of Digital Subscription Models

Subscription and recurring payment models enable companies to generate reliable revenue streams by delivering value to customers on a continued basis. Subscription and recurring payment products cater to various sectors including media, publishing, software-as-a-service, and more. Subscriptions allow customers to access digital content, software, services, or physical goods at a fixed periodic rate. The global subscription and recurring payment market enables businesses to adopt subscription models comfortably and generate predictable cash flows.

The global Subscription and Recurring Payment Market is estimated to be valued at US$ 154.05 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The adoption of digital subscription models has accelerated the growth of the subscription and recurring payment market substantially over the past few years. As digital transformation became imperative during the pandemic, many companies transitioned from physical to digital subscription models for products and services. This helped improve customer retention while boosting recurring revenues. Popular digital subscription services now include music and video streaming, online magazines/newspapers, cloud software, online learning courses etc. The prevalence of smartphones and high-speed internet has made digital subscriptions easily accessible. Moreover, the option of pay-as-you-go electronic payment facilities has enhanced customer experience with digital subscriptions globally.

Segment Analysis
The global subscription and recurring payment market is dominated by subscription billing management sub segment. This sub segment involves recurring billing, invoicing, subscriptions and payment processing for subscriptions. It has emerged as largest sub segment as most businesses are adopting subscription model and require sophisticated billing and payment management for recurring transactions.

Key players operating in the subscription and recurring payment market are PayPal, Stripe, Square, Recurly, Chargify, Zuora, FattMerchant, Payment Depot, PaymentEvolution, FastSpring, Chargebee, Spreedly, ChargeOver, Chargent, Vindicia, Chargify, Razorpay, Cashfree, CCAvenue, BillDesk. PayPal and stripe currently dominate the market due to their expertise in online payment processing and strong merchant network.

Regional analysis: The Asia Pacific region is expected to be the dominate and fastest growing regional market over the forecast period. Countries like India, China and Indonesia are witnessing rapid growth in digital subscription across sectors like education technology, gaming, OTT etc. Supportive government policies toward digital payments and availability of affordable internet are driving the adoption of subscription models.

Key Takeaways
The global Subscription and Recurring Payment Market is expected to witness high growth over the forecast period of 2023 to 2030.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it