IXOPAY webinar key takeaways – why payments fail and how to fix them

Irina Ionescu, Senior Editor at The Paypers, uncovers the key takeaways from the latest webinar with IXOPAY on the practical strategies required for subscription growth, why payments fail, and how to fix them.

For SaaS and subscription businesses, every renewal represents a critical moment of truth. Yet, behind the scenes, failed transactions, outdated customer data, and rigid billing processes quietly erode recurring revenue streams. According to recent data by PYMNTS, failed payments account for up to 50% of subscription churn, representing millions in lost revenue annually for companies.

The Paypers recently hosted a webinar in collaboration with IXOPAY and Zooplus – Practical Strategies for  Subscription Growth: Why Payments Fail and How to Fix Them. Payment experts Jacob Boggess, Account Manager at IXOPAY, Jobe Harrison, Senior Solutions Architect at IXOPAY, and Liam Castagna, Head of Payments and Fraud at Zooplus, shared practical strategies for tackling this costly challenge. Their insights reveal that, while the subscription economy continues to outpace traditional commerce, success depends on building flexible, intelligent payment foundations.

Below you can find summarised the key takeaways of the webinar.

The hidden cost of payment failures

The impact of failed payments varies dramatically across industries. Liam Castagna reports single-digit failure rates at Zooplus, Europe's largest online pet food retailer, while other sectors face steeper challenges. The difference? Product necessity and customer demographics play crucial roles.

Further exemplifying, Liam mentions that the company sees payment failures, despite having a product people want and need. The product is usually bought using a credit card attached to a household and to a mature person in that household who has pets. This contrasts with digital goods or media subscriptions, where discretionary spending and younger demographics can push failure rates up to 50%. Jobe Harrison identifies the primary culprits by mentioning that the most common reason a payment fails is the card data itself. 

Building your payment stack: start small, think big

Jacob Boggess emphasises that successful payment infrastructure takes time and discipline –  ‘the ones that I see the most success with, they start small and they finish big. It's such a great journey for them whenever they start layering in these products and they understand how they work before they move on to the next one.’

The typical evolution of the payment infrastructure follows a predictable path:

• Stage 1: universal tokenization – merchants start implementing universal tokens to own their payment data rather than being locked into a single processor;
• Stage 2: network tokens – adding network tokenization for subsequent transactions to improve authorisation rates;
• Stage 3: multi-PSP strategy – leveraging multiple payment processors for redundancy and negotiating power;
• Stage 4: Advanced orchestration – implementing BIN-based routing, fraud services, and geographic optimisation.

According to Liam Castagna, getting into subscription payments at a basic level is easy, which makes this payment model attractive. However, merchants must consider their architecture before trying to make use of all the available tools in order to scale their business. 

The power of universal tokens

One of the most powerful tools in the modern payment stack is represented by the universal token, a merchant-owned token that provides flexibility across payment processors and is individually assigned to each merchant. The ownership provides several critical advantages, including the ability to:

• Switch between payment processors without painful data migrations;
• Split test new providers without risking existing operations;
• Negotiate with payment processors;
• Ensure redundancy when processor outages occur.

And, if merchants are familiar with migrating data between processors or gateways, they understand the struggles of the process. ‘Having that universal token, migrating between processors is no longer a pain you have to suffer through, ’ mentions payment expert Jacob Boggess.

The true cost of customer acquisition

As the discussion progressed, the panellists tackled the economics of customer retention versus acquisition. According to Castagna, it takes about 17 new customers to replace one loyal customer. This reality shifts the focus from aggressive acquisition to thoughtful retention strategies, which further creates internal battles. And, while the marketing team expects quantity, the payments and fraud team seeks quality customers. 

The solution is implementing smart filtering upfront. According to Boggess, BIN blocking specific cards or gift cards that won’t achieve multiple authorisations should be an option. Thus, merchants should focus on filtering out problematic payment methods upfront.

Compliance and transparency: the new normal

Regulatory changes are reshaping subscription commerce, with new requirements for express consent and transparent cancellation processes. Regulators want to see unambiguous affirmative agreements upfront, where customers clearly understand they're enrolling in a recurring service.

Key compliance considerations include:

• Making cancellation as easy as enrolment — if signup takes two clicks, cancellation should too;
• Clear disclosure of payment amounts, frequencies, and cancellation methods;
• Transparency about card updating services to avoid surprise charges;
• Proper billing descriptors to reduce chargebacks.

Conclusions

The subscription economy's continued growth depends on solving the payment reliability challenge. While failed payments may seem like a technical problem, the solution requires a holistic approach,combining smart technology choices, customer-centric policies, and strategic thinking about long-term value. According to the panellists, success in subscription commerce is not about implementing every possible tool immediately but understanding the merchant’s specific business needs. Merchants should start with foundational elements such as universal tokens and Card Account Updater and gradually build towards a sophisticated payment orchestration strategy that maximises authorisation rates and customer lifetime value.

Businesses looking to grow their subscription base should invest in payment infrastructure, own their data, and prioritise the quality of their customer relationships over short-term conversion metrics. In the subscription economy, reliability represents the foundation of sustainable growth.

Want to find out more about subscription payments? Watch the full webinar on demand here.

 

About the author

Irina is a Senior Editor at The Paypers, primarily specialising in online payments and fraud prevention. She has a Ph.D. in Economics and a strong economic academic background, with interests in fraud prevention, chargebacks, fintech, ecommerce, and online payments. Reach out to her via LinkedIn or email at irina@thepaypers.com.

 

About IXOPAY

IXOPAY is the enterprise-grade global payment orchestration platform built for the era of agentic commerce, equipping merchants and businesses with AI-driven intelligence, advanced tokenization, and the tools to power every step of their payments journey. From routing and compliance to customized modules and full-scale orchestration, IXOPAY delivers the infrastructure for faster integrations, higher approval rates, and seamless global expansion. Learn more at www.ixopay.com.