Subscriptions today are no longer limited to streaming services and monthly product boxes — they’re becoming a dominant force across a variety of industries, transforming the way businesses engage with their customers. 

This evolution was the focus of Recurly’s in-person event in Amsterdam, The Future of Subscriptions with citizenM, hosted in partnership with Adyen. During the event, Joe Rohrlich, CEO of Recurly, Joost van Bommel, Head of Membership Products at citizenM, and Amber Bienfait, Commercial Strategy Lead, Digital, at Adyen explored the trends, challenges, and opportunities shaping the future of subscriptions.

Watch it on-demand or continue reading to get the highlights of the event.

The growth of subscriptions and what’s driving them

According to Forbes, the global subscription economy market size is projected to reach $1.5 trillion by 2025 — a massive jump from $650 billion in 2020. No doubt, this rapid growth highlights the strategic importance of subscription business models in driving revenue growth and fostering long-term customer loyalty. 

So what’s fueling the subscription economy’s explosive growth? According to Rohrlich, there are two main drivers. First, the subscription model is being adopted by a range of new industries beyond traditional sectors like streaming media and software. Retail, travel and hospitality, and even healthcare are embracing subscriptions as a way to create recurring revenue and deepen customer relationships (more on this in the next section). 

The second driver of subscription growth is global change. Rohrlich points out that while the U.S. and Europe currently represent the largest subscription markets, the industry is also seeing particularly fast growth in the Asia-Pacific region, largely driven by shifting consumer preferences and increasing demand for subscription-based services. As these trends unfold, businesses around the world will need to adapt to meet this growing demand.

How the subscription model is breaking into new industries

Early in the discussion, Bienfait highlighted a significant trend: the boundaries between subscription and non-subscription businesses are rapidly disappearing. As a global fintech platform, Adyen has seen firsthand how businesses across all industries are adopting subscription models to drive engagement and enhance customer loyalty.

"We, as consumers, are more likely to go back to a brand where you have a subscription," Bienfait noted, underscoring how subscriptions can foster long-term relationships.

Indeed, many sectors that traditionally wouldn’t have been associated with subscriptions are now embracing this model. Airlines, for example, are introducing “All You Can Fly” passes, giving customers access to unlimited flights and exclusive offers. Similarly, Nespresso has ventured into subscriptions, offering customers a monthly supply of their favorite coffee products. Even hotels like citizenM are getting in on the action, adapting their business models to offer more than just overnight stays, but a broader range of lifestyle benefits including co-working spaces, early access to sales, and food and beverage offerings.

No doubt, this shift reveals a broader trend across the market: consumers increasingly prefer the convenience, personalization, and predictability that subscriptions offer. And as more industries adopt this model, businesses have a clear opportunity to create stronger, more lasting connections with their customers.

Challenges to consider when expanding subscriptions globally 

When going global with a subscription business, there’s almost never a one-size-fits-all approach. On the contrary, as Bienfait explained, every region has its own unique market dynamics, payment preferences, and consumer behaviors. 

For instance, in the Netherlands, employees typically get paid on the 24th of each month, while in the U.S., it's common to receive paychecks twice a month. These nuances influence when customers prefer to make payments, even down to the time of day. Preferred payment methods also vary significantly across countries — for example, iDEAL is the favored method in the Netherlands, while in the U.S., many consumers prefer to pay with credit cards or digital wallets. 

According to our research, 61% of consumers are more likely to subscribe if they can choose their payment date, and 18% feel more valued as a subscriber when offered the ability to personalize their subscription, including payment type. As such, businesses going global must first consider adding localized payment methods and adjusting their strategies to accommodate cultural differences and consumer habits in each market.

Strategies to push customer retention

Depending on what industry you’re in, acquiring a new customer can be anywhere from 5 to 25 times more expensive than retaining an existing one — which is why many of today’s businesses are putting a larger focus on keeping their existing customers happy.

For citizenM, boosting customer retention has hinged on being transparent about the tangible value its products and services provide. For example, when booking a hotel room, mycitizenM+ members see their actual discount displayed in their local currency, and on their dashboard, they can track their lifetime savings based on how long they've been a member and how many bookings they’ve made. According to van Bommel, this approach has had a positive impact on renewals, as customers are more likely to stay subscribed when they see how much money they’re saving.

In addition, citizenM has gradually expanded its “sleep” product offering (i.e. hotel stays, room amenities, food and beverage services, and late checkouts) to include "work and play,” adding perks like free co-working spaces for members. According to van Bommel, these enhancements have made the membership an even more compelling deal, allowing for deeper customer engagement and increased renewals.

Fostering loyalty through rewards and exclusivity

According to recent Recurly data, 82% of consumers would stay subscribed if they were given loyalty incentives. Typically, these incentives come in the form of lower costs, discounts and promotions, and the like. 

However, Rohrlich pointed out that beyond traditional rewards programs, many businesses are now fostering loyalty through exclusivity and early-access offers. Rather than receiving standard rewards, today’s consumers are often more willing to pay for privileged access. 

For example, Rohrlich highlighted that some professional sports teams are offering paid memberships, which provide access to exclusive player content and unique in-stadium experiences. Additionally, Rohrlich echoed Bienfait's earlier mention of airlines offering “All You Can Fly” passes, but added that some airlines are experimenting further with exclusive access to special fares or preferred seating for a small monthly fee.

This shift toward exclusivity and early-access perks is becoming a popular way for brands to experiment with loyalty strategies, delivering a sense of VIP treatment that strengthens customer engagement.

Predictions for the future of subscriptions

The discussion wrapped with the panel giving their predictions for the future of subscriptions — where is the industry headed? And how can merchants be prepared? 

For Bienfait, it’s all about the growing demand for frictionless subscriber experiences, particularly in online checkouts. Today, customers are hyper-focused on seamless, effortless payment processes, and merchants will increasingly integrate subscription signups into their brick-and-mortar stores to meet this demand. 

Take Nespresso for example: While some customers prefer buying a machine and subscribing online, others prefer to visit in-person to taste the coffee and complete their subscription signup via in-store payment terminals. By bridging the gap between online and in-store experiences, this approach allows merchants to offer a frictionless experience across various channels.

In terms of retention, Bienfait touched on the growing role of AI and machine learning. While these technologies are often seen as buzzwords, Adyen is actively exploring how they can be applied practically to boost customer retention, such as identifying which payment methods lead to the highest customer lifetime value. For example, bank accounts tend to have a longer lifetime value than credit cards, so presenting the right payment options early in the customer journey is a potential strategy for extending retention.  

Wrap up

For companies looking to stay ahead of what’s next, the key takeaway is clear: the future of subscriptions isn’t just about recurring payments — it’s about building long-term relationships with customers and delivering ongoing value.

With consumer demand for personalization, flexibility, and convenience at an all-time high, subscription models are proving to be a powerful tool for growth. As highlighted by Recurly, citizenM, and Adyen, success in this space will require businesses to continually adapt, using data-driven strategies to retain customers, expanding thoughtfully into global markets, and leveraging technology to deliver exceptional subscriber experiences.