Hey there! Welcome back to Product Perspectives. I’m Adrita Bhor, VP of Product Management at Recurly. In this issue, we’ll talk about an exciting topic: scaling globally. 

Our commissioned study by Forrester Consulting on behalf of Recurly shows that 79% of subscription companies are planning to expand. Sound familiar? Then this might interest you.

Let’s face it, global expansion comes with many challenges — from navigating complex tax regulations to optimizing payment processing in new markets, you can face growing demands that slow growth and increase operational headaches. 

Enter the Merchant of Record (MoR) model. 

What is a Merchant of Record, and why does it matter?

A merchant of record is a third-party entity that handles all aspects of selling a product or service on behalf of a business. Think of MoRs as your operational partner for processing payments, managing tax complexities, and navigating all of the regulatory challenges that come with doing business in various jurisdictions. 

This approach is particularly effective for subscription businesses looking to expand internationally, as it eliminates:

  • Cross-border complexity: Tax compliance, local regulations, and payment optimization are becoming increasingly complex — handling them manually as you scale can overwhelm your team

  • Demand for speed and scale: Streaming and emerging AI platforms need fast, scalable solutions to keep up with high demands without sacrificing service quality

  • Flexibility over lock-in: Growth-focused businesses like yours need customizable solutions, not an all-in-one approach

Now, let’s take a deep look at how a MoR model delivers value for your business.

Why work with a Merchant of Record?

Partnering with a MoR equips you with powerful tools to streamline operations and ensure global compliance. Recurly merchants, for example, can rely on Reach — which takes care of payments routing, taxes, payouts and global regulations, allowing you to focus on core product experience instead of complex transactional challenges.

The benefits go beyond operational efficiency, delivering value that can transform how businesses scale and thrive in an increasingly competitive market.

Payment performance

Nothing sabotages revenue growth faster than failed payments or blocked transactions. As a merchant of record, Reach integrates with Recurly using its native merchant credentials to route payment transactions locally based on customers location — improving  authorization rates and building trust with customers.

Combine this with Recurly’s revenue recovery tools, like intelligent retries, and you’ve got a system designed to maximize payment success rates. Together, these capabilities increase conversions and capture missed revenue opportunities.

Global simplicity

Tax compliance in international markets is a maze of VAT rates, local filing requirements, and fiscal representation rules. Reach takes on full responsibility for tax management. When combined with Recurly’s powerful subscription management tools, businesses can easily operate in multiple markets without drowning in compliance complexity.

Risk reduction

Expanding globally brings risks like chargebacks, fraud, and regulatory fines. Reach gives you peace of mind while they focus on strategic growth. By managing compliance down to the granular level, an MoR lets businesses expand confidently without the fear of costly missteps.

Flexibility and control

Unlike all-in-one global platforms, working with an MoR like Reach doesn’t mean locking your business into an inflexible system. You keep direct relationships with payment service providers (PSPs) where it makes sense, using Reach selectively as your MoR based on regions or strategies. This hybrid model ensures businesses have both control and scale.

Sustainable growth

Subscription brands thrive on steady, predictable growth. Recurly and Reach take the guesswork out of global expansion by optimizing key levers like payment processing and subscriber retention. From localization to personalized pricing, these solutions drive long-term customer loyalty and improve lifetime value (LTV) across your subscriber base.

Enterprise-grade capabilities

While some global platforms are built for small- to mid-sized operations, Recurly and Reach cater specifically to enterprise-grade businesses. For companies handling large-scale operations or expanding into highly regulated markets, this partnership offers the control, customization, and scalability they need to thrive.

Cost advantage

Cost efficiency might not be the first thing that comes to mind when thinking of global expansion, but it should be. By optimizing payment processes, reducing tax-related surprises, and streamlining the operational workflow, Reach’s pricing model often outperforms competitors offering similar capabilities. 

Enterprise flexibility, without the headaches

Recurly and Reach are designed to work in tandem to offer you the flexibility, simplicity, and performance to scale responsibly and profitably. Together, we take the headache out of going global.

With Recurly’s advanced subscription management tools and Reach’s expertise as a merchant of record, you can:

  • Expand into new markets seamlessly: Manage subscriptions at scale while ensuring localized compliance

  • Reduce churn and boost conversions: Offer local payment options and optimize retry logic for maximum retention

  • Focus on growth, not operational drag: Offload regulatory complexities while maintaining control over your strategy

It’s time to scale without the growing pains. Book a demo today and see how Recurly and Reach can power your global expansion.