Flexible payments play major role in subscriptions
Welcome back to Subscriptions Weekly! In this edition, we review credit card spending from 2022 and how flexible payment options–like digital wallets and Buy Now, Pay Later features– contribute to its rise. We check on the new Apple Pay Later solution, the upcoming changes in the Twitter Blue subscription, and the UK’s draft Media Bill.
Credit card spending topped $13T last year
Global spending on credit cards last year rose to more than $13 trillion across in-store and online checkout, according to Fidelity National Information Services (FIS). The company attributed the rise to more sources of credit, including digital wallets loaded with credit cards, Buy Now, Pay Later options, and point-of-sale financing offered by fintech, banks, and merchants. Learn more on Payments Dive.
Many subscription businesses focus on personalized checkout experiences as part of their retention efforts, and the rise of digital wallets continues to grow exponentially. In fact, PayPal accounted for 18% of all transactions and 92% of APM transactions in subscriptions last year.
While the payment experience is an afterthought for many companies, it is key to subscription growth. Download The State of Subscriptions report to get more benchmarks and insights to design the perfect payment strategy.
Apple launches Buy Now, Pay Later functionality
Apple is launching Apple Pay Later, the company’s take on the buy now, pay later business. Users can apply for Pay Later loans of $50 to $1,000 and repay them through four payments over six weeks with no interest or fees. The feature exists within the Apple Wallet and is supposed to let you avoid paying the full price for a product right away. Read more on The Verge.
Only Twitter Blue subscribers will be able to vote in polls & featured in “For You” timeline
Aside from a blue checkmark that verifies users of the social media platform are paying for the service, Musk stated that starting April 15, only verified accounts will be eligible to be in ”For You” recommendations. He also mentioned that voting in polls will require verification to address advanced AI bots. Read more on Deadline.
Leveling the playing field for TV and streaming: the UK’s draft Media Bill explained
The draft Media Bill hopes to reform laws to boost the growth of the UK’s public service broadcasters (PSBs) by creating more equal footing for TV–introducing more flexible rules on what TV programs PSBs are required to show.
Recurly EMEA General Manager Oscar Wall states, "additional investment in technology will deliver exciting innovations that will attract growing audiences and deliver more personalized, lasting connections with viewers. In turn, this will be a revenue driver through advertising, subscriptions, and potential multi-platform media partnerships.” Learn more on Performance Marketing World.
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From the Recurly blog
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