Subscription businesses face challenges such as high customer acquisition costs, poor first-payment approval rates, and revenue losses from declined recurring payments. Regardless, the industry is due to reach USD 500 billion in 2025, growing 65%, This growth can be attributed to convenience and time-saving, personalisation, product discovery, customer retention, and diverse product categories.
Subscription services can benefit businesses with regular cash flow, increased customer loyalty and improved decision-making. The market is expected to grow to USD 3485.51 billion by 2029. Trends in the forecaster period could include specialised subscription boxes, rental and try-before-you-buy models, AI and predictive analytics, integration with lifestyle trends, and flexible subscription models.
In a subscription-based economy, the inability to secure approvals can result in losses of significant revenues. Solidgate aims to tackle this challenge by implementing Silverflow’s cloud-native platform to optimise its payment flow and provide technological support. The partnership will enable subscription businesses to manage payments and boost performance metrics.
Silverflow’s platform provides Solidgate a tailored payments processing solution for faster and more cost-effective offerings. The company delivers implementation that facilitates the rapid integration of new technologies, including reconciliation capabilities and compliance with evolving scheme requirements.
Additionally, real-time data transparency allows Solidgate to improve payment costs, optimise risk scoring, and refine authentication processes. This ensures legitimate transactions are approved without unnecessary declines, and improves overall payment strategies.
Utilising these features led Solidgate to reach a 7% improvement in conversion rates for its customers and 8% increase in acceptance rates. This development drove over 20% growth in bottom-line performance for both Solidgate and its merchants, which aligns with the company’s USD 100 billion subscription growth plan.
For more information about Silverflow, please check out their detailed profile in our dedicated, industry-specific Company Database.
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