Subscription Economy Boom: How Visa Technology is Simplifying Recurring Payments
16.10.2024 | 13:43 Home / News / Visa Voice /
From streaming services to meal kit plans, subscription services have become integral to daily life as consumers seek the ease of automated, recurring payments. Subscription services offer discounts, enhance convenience, and allow for the customization of products—all priorities for the contemporary clientele. They also provide perks such as next-day delivery and streaming video on demand, driving wider adoption of subscriptions in the digital economy.
Challenges rise
The global subscription services market is projected to reach an impressive valuation of $409 billion by 20251 . However, while consumers appreciate the convenience and savings subscription services provide, managing numerous subscriptions can be daunting. Consequently, banks are being called upon to deliver solutions that simplify the handling of ongoing payments. By adopting these innovations, financial institutions can maintain their relevance, offering value-added services that align with consumer demands, enabling simple and transparent payment management, and securing customer loyalty.
Managing recurring payments efficiently
Recognizing the many challenges consumers and banks face, Visa has responded with Subscription Manager. This service offers a comprehensive set of digital tools designed to help issuers provide a better digital experience to their cardholders, allowing for easy review and management of all the subscription services a cardholder is signed up for. Moreover, it supports Visa’s overarching efforts to empower consumers and give them control over their subscriptions.
Managing subscriptions more effectively will have an impact not only on the consumer but also on issuers and acquirers. By reducing chargeback payments, minimizing disputes, and lowering call center volumes, Subscription Manager helps companies across the digital economy cut costs. Acquirers also benefit from fewer payment authorization declines and the standardization of stop-payment instructions.
Empowered cardholders in Armenia
In Armenia, the cashless economy is rapidly growing, as are subscriptions to different services. Seizing this opportunity, Armenia’s Ameriabank adopted Subscription Manager, providing the innovative solution for its customers2.
The service offers an efficient way to monitor recurring transactions and cancel subscriptions, safeguarding customers against fraud and unwanted charges, particularly when contacting subscription platforms proves difficult. It also gives cardholders better insight into their spending through a modern, user-friendly interface.
Subscription Manager has already shown remarkable results among Ameriabank’s clients. On average, 12,000 users utilize the service monthly through the bank's mobile app. There also was a fivefold increase in successfully stopped payments, while the related call center volumes saw a 20% reduction3.
As we navigate the evolving landscape of digital commerce, solutions like Visa Subscription Manager play a crucial role in shaping the future of payments. Visit the Visa Developer Center to learn how Subscription Manager and other digital enablement solutions can help you provide better digital experiences for cardholders.
1Juniper Research, Subscription Economy Future Strategies & Market Forecasts 2022 – 2026
2https://navigate.visa.com/cemea/spotlight-series/in-the-spotlight-exploring-armenias-growing-subscription-economy-with-ameriabank/
3Collected by the VSPS API, Visa GBI and Ameriabank CRM Ticketing System from launch in Feb. 2023 up to and including Oct. 2023
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Challenges rise
The global subscription services market is projected to reach an impressive valuation of $409 billion by 20251 . However, while consumers appreciate the convenience and savings subscription services provide, managing numerous subscriptions can be daunting. Consequently, banks are being called upon to deliver solutions that simplify the handling of ongoing payments. By adopting these innovations, financial institutions can maintain their relevance, offering value-added services that align with consumer demands, enabling simple and transparent payment management, and securing customer loyalty.
Managing recurring payments efficiently
Recognizing the many challenges consumers and banks face, Visa has responded with Subscription Manager. This service offers a comprehensive set of digital tools designed to help issuers provide a better digital experience to their cardholders, allowing for easy review and management of all the subscription services a cardholder is signed up for. Moreover, it supports Visa’s overarching efforts to empower consumers and give them control over their subscriptions.
Managing subscriptions more effectively will have an impact not only on the consumer but also on issuers and acquirers. By reducing chargeback payments, minimizing disputes, and lowering call center volumes, Subscription Manager helps companies across the digital economy cut costs. Acquirers also benefit from fewer payment authorization declines and the standardization of stop-payment instructions.
Empowered cardholders in Armenia
In Armenia, the cashless economy is rapidly growing, as are subscriptions to different services. Seizing this opportunity, Armenia’s Ameriabank adopted Subscription Manager, providing the innovative solution for its customers2.
The service offers an efficient way to monitor recurring transactions and cancel subscriptions, safeguarding customers against fraud and unwanted charges, particularly when contacting subscription platforms proves difficult. It also gives cardholders better insight into their spending through a modern, user-friendly interface.
Subscription Manager has already shown remarkable results among Ameriabank’s clients. On average, 12,000 users utilize the service monthly through the bank's mobile app. There also was a fivefold increase in successfully stopped payments, while the related call center volumes saw a 20% reduction3.
As we navigate the evolving landscape of digital commerce, solutions like Visa Subscription Manager play a crucial role in shaping the future of payments. Visit the Visa Developer Center to learn how Subscription Manager and other digital enablement solutions can help you provide better digital experiences for cardholders.
1Juniper Research, Subscription Economy Future Strategies & Market Forecasts 2022 – 2026
2https://navigate.visa.com/cemea/spotlight-series/in-the-spotlight-exploring-armenias-growing-subscription-economy-with-ameriabank/
3Collected by the VSPS API, Visa GBI and Ameriabank CRM Ticketing System from launch in Feb. 2023 up to and including Oct. 2023