Subscriber growth? The answer is in payments
Welcome back to Subscriptions Weekly–a recap of the most relevant industry content. This time, we review the importance of finance solutions and fraud management for subscription businesses and how you can find growth opportunities in payments. Additionally, we check on GPT-4 updates and new products with Duolingo and Quora.
Tough times reveal embedded finance benefits
In today’s challenging macroclimate, meeting consumer preferences is critical to business growth and survival.
Meghan Ryan, CFO at Treasury Prime, sees a lot of focus on customer engagement, underscoring that embedded banking solutions provide a critical value-add for enterprises looking to acquire and expand their customer relationships.
She noted that the answer to those needs increasingly lies with embedded finance tools. Those businesses tapping embedded solutions are well-positioned relative to the competition to deliver the personalized, digital-first offerings their customers expect. Read more on PYMNTS.
Swapping traditional methods for efficient alternatives is increasingly the norm, as 41% of U.S. businesses use instant payments. However, the transaction’s speed could make detection more difficult in manual reconciliations, so some businesses may consider implementing increased fraud-fighting capabilities.
Subscription companies see an opportunity in alternative payment methods. APMs are one of the most effective ways to generate more revenue and better manage fraud: according to our State of Subscriptions report, Recurly merchants saw a 1.5% lower rate of fraudulent declined transactions with APMs than credit and debit cards.
Download the full report to get more insights into the subscription economy and learn how to recession-proof your business with the right strategy across the subscriber lifecycle.
Subscription businesses lose 9% of revenue from failed payments
As mentioned before, payments are a growth opportunity subscription businesses should not miss. According to PYMNTS, subscription providers lose, on average, 9% of annual revenue to failed payments. While only 17% of companies track them, subscription businesses that analyze failed payments lose 37% less revenue.
For subscription-based businesses, specifically, having a subscription management and recurring billing platform that understands the complexities of payment gateways and effective dunning and provides the necessary tools to expand is key to success. Read more on PYMNTS.
The rise of AI: What’s new with GPT-4?
From processing pictures to acing tests: OpenAI announced its next-generation AI language model, GPT-4. The system has plenty of new capabilities–it can process images, ace tests, is better at playing with language, and has been powering several products. Learn more on The Verge.
Duolingo launches subscription tier with access to AI tutor powered by GPT-4: Duolingo Max, which costs $29.99/month, unlocks two new AI-powered features. The “Roleplay” feature lets users practice real-world conversation skills, while “Explain My Answer” allow users to learn more about their responses. Read more on TechCrunch.
Quora’s Poe is launching subscriptions to chat with a GPT-4-powered bot: The company announced that its chatbot app Poe will now have a $19.99/month tier to let users ask questions to bots powered by these models. Learn more on TechCrunch.
Join Recurly at these exciting events
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From the Recurly blog
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