The world is rapidly shifting to a new model of relationships between companies and customers – a model of regular subscription payments. Instead of one-time purchases, more and more people are choosing a convenient and predictable format of automatic debiting for ongoing use of goods and services.
Subscription payment processors have become popular thanks to their obvious advantages: they guarantee stable income and customer loyalty for businesses, while offering convenience and time savings for users. Today, subscriptions cover a wide range of areas, from digital content and cloud technologies to food and household goods.
Over the past decade, the subscription market has shown phenomenal growth, with an annual growth rate of 17.5% and a total capitalisation of the digital subscription economy approaching $1.5 trillion by 2025. Growth is particularly pronounced in the digital media and entertainment segment, where the number of subscribers has increased by 124%, and the publishing industry has shown an incredible jump of 536%.
The main drivers of growth for subscription payment platforms are convenience and personalisation of service, the ability to test products for free, ease of subscription management, and the formation of a community of loyal customers. For businesses, the advantages of the subscription model include a stable cash flow, reduced costs for attracting new customers, and the ability to retain existing users in the long term.
In this article, we will discuss the features of subscription payment services using cryptocurrency, how to connect them to your business, and the pros and cons of this payment format.
What are subscription payments?
A subscription payment gateway is an automated mechanism for regularly collecting funds from customers (weekly, monthly, or annually) in exchange for the ongoing delivery of goods or services.
This model eliminates the need for the company to manually invoice each customer, creating a stable and predictable source of income.
The online subscription payment processing process consists of several stages:
- Customer acquisition and registration. Consumers discover the offer through product pages, special promotions or trial periods. Companies encourage registration with discounts or gifts.
- Selecting a tariff and payment method. Customers choose a suitable tariff plan (monthly, quarterly, annual) and indicate their preferred payment method (crypto, credit card, PayPal, Apple Pay, etc.).
- Payment data collection and protection. The details are securely stored in accordance with PCI DSS requirements. Customers give their consent to automatic regular debits.
- Automatic order processing. The order is sent to the fulfilment system and processed without any additional intervention from the customer.
- Subscription management. Special applications allow customers to easily change, pause or cancel their subscription, which improves the user experience and reduces dissatisfaction.
- Integration with internal systems. Payment gateways interact with CRM, warehouse accounting and analytical tools, ensuring complete transparency of processes.
Types of subscription payments
There are several subscription payment models in cryptocurrency, each of which is suitable for specific types of businesses.
Fixed regular payments
Customers pay the same amount at set intervals. Used for food delivery, beverages, magazines, and streaming services (e.g., Dollar Shave Club, FabFitFun).
Pay-as-you-go
Customers pay only for the resources they actually use. Mainly used in the IT sector (Dropbox, AWS).
Hybrid pricing
Includes a fixed fee plus additional charges for exceeding the limit. Common for telecommunications services (Adobe Creative Cloud).
Multi-tier subscription
Allows customers to choose service packages based on their budget and needs. Widely used in the SaaS sector and beauty boxes (Birchbox, Scribd).
Freemium model
Free access to basic product features with the option to upgrade to a premium version. Effective for expanding your audience (Audible, Grammarly).
Methods of processing subscription payments
There are three main approaches to making subscription payments in cryptocurrency.
In-house development
Pros: complete control, no commission fees. Cons: large initial investment, complexity of compliance with security standards.
Use of external payment gateways
Pros: ease of integration, high level of security. The disadvantages are increased costs as the number of subscribers grows. 0xProcessing is one of the popular cryptocurrency payment gateways that accepts payments in 14 blockchains and supports more than 50 popular cryptocurrencies. You can find out more about the partnership, the cost of services, and integration features in a free consultation. Leave a request and receive a response on the same day.
Specialised subscription management platforms
These offer advanced billing, analytics, and customer lifecycle management features. Although they require a significant investment, they make it easier to comply with tax regulations and provide deep integration with external systems.
Choosing the best method depends on the stage of development and characteristics of your business:
- Small start-ups and young brands. Ready-made plugins and payment gateways are best suited, providing simplicity and low start-up costs.
- Growing medium-sized businesses. Specialised subscription management platforms are the optimal solution due to their flexibility, scalability and deep analytics.
- Large companies with specific requirements. Customised solutions are possible, but powerful third-party platforms often prove to be a more effective option in the long run.
All three options are available through 0xprocesing. The right payment model can significantly improve your financial stability, enhance customer service and accelerate your company's growth.
Advantages of subscription payments: benefits for businesses and customers
Subscriptions for payments in cryptocurrency are no longer a novelty and now occupy a strong position in various business sectors. In addition to the obvious advantage of regular cash flow, this model has a number of hidden benefits that set it apart from the traditional one-off payment model.
Let's first talk about the advantages for businesses.
Additional sales and cross-sales
Customers appreciate the ability to convert a one-time purchase into a regular subscription. For example, the popular giant Amazon successfully implements its ‘Subscribe and Save’ programme, offering customers savings of up to 15% on repeat purchases.
Similar mechanisms have been implemented in other systems, such as Shopify and Woocommerce, helping to increase the average check and engage customers more deeply with the product.
Improved cash flow
Regular payments make it easier for businesses to forecast sales and plan their expenses, whether it's purchasing raw materials or marketing campaigns. A high-quality payment processor encourages more registrations, strengthening the company's financial stability.
Improved customer experience
Automating the payment process makes regular purchases as simple and straightforward as possible for customers. They don't have to think about when their next purchase is due, which makes their lives much easier and creates a positive attitude towards the brand.
Predictable revenue
Subscribers form a group of loyal customers who make purchases without additional incentives. This makes it possible to redirect the freed-up marketing budget to attracting new audiences and further developing the business.
Advantages for customers:
- Convenience and time savings. Customers do not need to regularly purchase the same goods or services.
- Savings. Many companies offer favourable terms and discounts to regular subscribers.
- Guaranteed availability of the desired product. Subscribers can always be sure that the product they want will be delivered on time.
Possible disadvantages of the subscription model
Despite its many advantages, it is worth considering the potential disadvantages:
- Customer churn. Despite the low cancellation rate compared to one-time payments, customer churn remains an important metric that needs to be monitored.
- Technical difficulties. Setting up a high-quality subscription system requires certain technical knowledge and resources.
- Customer forgetfulness. Some users find it difficult to keep track of all their subscriptions, which can lead to unnecessary expenses.
The subscription payment model is a powerful tool that allows businesses to achieve stability and confidence in the future, while customers enjoy the convenience and benefits of regular cooperation. A well-organised subscription system can significantly strengthen the competitive advantages of any company.
If you want to implement effective subscription payments in your business, check out the 0xProcessing platform, a modern service that will provide your customers with a flawless experience and increase the profitability of your business.
How 0xProcessing supports subscription payment processing
0xProcessing offers a wide range of solutions, including support for processing subscription payments in cryptocurrency. Below are the key components and features that make 0xProcessing a reliable partner for businesses operating on a recurring payment model.
0xProcessing subscription module
0xProcessing is a payment gateway that allows businesses to accept payments through subscription systems. We charge a fee only for processing transactions, without any charges for connection and service use. With the built-in conversion of tokens to USDT, you can avoid losses due to cryptocurrency volatility.
Secure storage of payment data
0xProcessing provides secure storage of customer payment data using tokenisation, which protects confidential information from unauthorised access. The service complies with high PCI DSS security standards, ensuring maximum protection of customer data.
Support for crypto payment methods
0xProcessing supports more than 50 cryptocurrencies, which allows partners to use all popular methods.
Smart retries and notifications
The built-in smart retry system automatically performs retries at the optimal time, increasing the chances of a successful transaction. Additionally, a convenient notification system reminds customers to update their payment details in case of a failed payment.
Customisable billing periods and proportional billing
0xProcessing allows you to flexibly customize billing periods (monthly, quarterly, annually, etc.).
Analytics and reporting
0xProcessing provides detailed analytics and reports on subscriptions and financial metrics, allowing companies to deeply understand revenue dynamics and make informed management decisions.
API-first
The 0xProcessing architecture is built on API-first principles, ensuring simple and fast integration with any web applications and platforms. This allows companies to develop customised interfaces and subscription processes.
Ready-made solutions for accepting payments
For companies that need to quickly launch a secure and reliable payment process, 0xProcessing offers ready-made solutions that support subscription payments and can be easily integrated into existing business processes. There is an opportunity to accept payments in over 50 of the most popular cryptocurrencies. Withdrawals of income without commission to a crypto wallet.
With the above features and a comprehensive payment solution ecosystem, 0xProcessing provides companies with a versatile and reliable platform for processing subscription payments, offering high flexibility and convenience for customers. Learn more about the capabilities of 0xProcessing and improve your business.
How can I minimise non-payments and customer churn?
Set up smart retries and convenient reminders for customers. Expand payment methods to reduce technical failures and improve user experience.
How can I optimise my billing cycles?
Offer flexible payment schedules: weekly, monthly, quarterly, or annually. Experiment with billing dates based on customer habits and activity.
What are the best practices for handling returns and cancellations?
Be open and honest with your customers: publish clear return and cancellation policies. Offer partial compensation for early subscription termination and make the cancellation process as simple as possible.
How do I choose the right platform for processing subscription payments?
An external payment gateway is suitable for small businesses. Specialised platforms are suitable for growing medium-sized businesses. Large companies with unique needs require a customised approach or powerful third-party solutions.
