Subscription payment is a broad topic but fret not, as we will make is as simple as possible in this blog post.
Firstly, what is Subscription Payment?
Subscription payment model is basically an agreement that the customers will make payment for a specific period of time, for a fixed price.
Subscribers typically commit to the services on a monthly or annual basis. When it comes to the types of subscription models, you’ll hear terms such as recurring payments, recurring billing, subscription payments, subscription billing, etc. Though the names may differ, they are all the same thing.
You might be wondering what type of business is suitable for a subscription? The answer can be everything and anything! It can range from gaming, cooking, water filter, music streaming, cloud storage, apps, web-services, insurance, telco bill payments and many more!
How to create Subscription Plan
The first step to create a subscription flow is to firstly, name the subscription plans. For example, “Platinum Plan”, “Gold Plan” and ” Silver Plan”. Then, you include the amount and the currency for these plans, e.g. “MYR 29.90”. Last, you set the payment frequency, which can be by month.
So here is the simplest way to understand how subscription payment work, you have your customer with their payment details, they make an initial payment and then periodically a charge is made until they decide to cancel the subscription or the merchant decides to end it.
At eGHL, we offer payments solutions that support your business and payment model, so that merchants can focus on other aspects of the business, delivering excellent products and services to the users and the customers can enjoy those products and services. Talk to us today at firstname.lastname@example.org for a free consultation.