Subscription payment is a broad topic but afraid not as we will be covering in this blog post, to understand the fundamental of Subscription we first must know what is and the types of 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 recurring payments, recurring billing, subscription payments, subscription billing, etc. Though the names may differ, it is 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!
A good example of a subscription flow for you is, firstly, you name the plan. For example, “Platinum Plan”. Then you include the amount and the currency for this plan, e.g. “MYR 29.90”, and you have the frequency, which is a 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 there’s a charge 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 email@example.com