Pagsmile launches recurrent payment been part of the payment solution along with others innovating payment solutions in Brazil market.
We selected 8 main reasons why having recurrent payment is so important.
1- Perfect for a diversification and wide range of business
Nowadays we have a wide range of product and services which are based on subscription programs. Having recurrent payment is essential for these business models. Some example of business:
A subscription box where customers receive a box full of goodies that can vary every month.
Auto-delivered products like Dollar Shave Club.
Providing educational content or training materials to your customers each month.
Appointment opportunities for businesses like hair salons or medical professionals.
Membership clubs, which is basically a monthly fee to gain membership in a “club” that earns freebies or discounts.
Utility companies who charge you for service each month.
Gaming companies with monthly packages.
Increasing competition and options to end user expend their their pocket money, now companies are seeking to retain customers loyalty with
programs, subscriptions and some way to attain users to your product or service to a longer life circle. Having a recurring payment option make this relationship with user closer and retains to your service or product.
Recurring billing is simply a convenient way to automatically bill your customers each month for the same amount of money. During each billing cycle the customer receives a notification electronically, which also triggers an automatic payment via credit card, ACH, or wire.
4- Makes cash flow predictable.
Because recurring billing is consistent like clockwork, and guarantees that you’ll get paid, calculating your income is incredibly easy since you know exactly what you’re going to receive during a specific timeframe. You can use this information to forecast future growth and earnings as well.
In short, recurring billing improves your cash flow and assists you in long-term financial planning.
5-Improves customer relationships.
Another perk of recurring billing is that you don’t have to have those awkward late-payment conversations with clients or customers, which can go a long-way in building your relationship with your customers. Personally, as a consumer, I always set-up automatic payments if available. This gives me control when the payments are withdrawn from my account, and I can basically eliminate the need for envelopes and stamps. It also gives me peace of mind since I don’t have to worry about ever forgetting to make-a-payment and then getting hit with a late fee.
6-Saves time and money.
Think of all the manpower your spend generating invoices each week. How about the costs of mailing and processing payments as well? Those costs all add-up.
If you were to automatically process eChecks, for example, you can cut your processing costs by 60%. Automated payments replace all of those sheets of paper and manual bookkeeping tasks. With automation you can send out bills, receive a payment, and record the payments without having to lift a finger.
7-It’s environmentally friendly.
When you go paperless, you’re helping out the environment. In fact, eChecks alone “help reduce the more than 67.4 million gallons of fuel used and 3.6 million tons of greenhouse gas emissions created by transporting paper checks.”
8-Keeps payment information secure.
With recurring billing you can securely manage your customer’s information, as well as reducing the duplication and circulation of sensitive information and preventing other types of employee error.