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Subscription-based sales are an upward trend, study shows

Thursday 21 June 2018 00:19 CET | News

The Q1 2018 benchmark report by 2Checkout has revealed that subscription-based sales are an upward trend and what payment methods are prevalent in several markets worldwide.

The company’s Digital Commerce Benchmark follows trends in the global consumption of software and digital services, as reflected by purchases via 2Checkout’s Avangate digital monetization platform, highlighting fast-growing regions and categories as well as uncovering the most popular payment methods worldwide.

The shift to subscription commerce is more evident when comparing data over time. In 2012, only about half (49%) of software sales were for subscription-based products and services, while a substantial 76% of sales in Q1 2018 have been for recurring-based purchases. The share of subscription-based products has been increasing steadily over the years, 2017 witnessing a 75% level.

Visa and Mastercard continue to dominate in terms of payment methods, accounting for 68 % of global online sales, followed by PayPal at 19% and American Express at 7%. This split emerges almost unchanged from the previous years, at global level and mirrored closely by US, the largest software market.

Other countries show stronger preferences for local payment methods such as iDEAL in the Netherlands (43%), Alipay in China (42%), local credit cards in Brazil (28%) and Turkey (17%) Carte Bancaire in France (at 12%) and JCB and Konbini in Japan (with 19.5 and 5% respectively).

The Digital Commerce Benchmark is based on a sample of hundreds of thousands of worldwide transactions moving through 2Checkout’s Avangate platform between January 2017 and March 2018.


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Keywords: subscriptions, report, ecommerce, 2Checkout, payment methods, local payments, Avangate
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