Business-Types That Could Benefit from Recurring Payments

April 17, 2019

When many people think of making a payment, they think the one-time occurrence of tapping a card or biometrically authenticating a purchase through a contactless device. But in reality, there are many other payment types that Canadian customers are making on a daily basis, one of which being recurring payments. These payments are used as a payment tool in a number of different industries, and can be ideal for both businesses and customers. Business owners can estimate their future revenue for a given time frame, and simplify their accounts receivable process. For customers, recurring payments can help them afford an expensive purchase through manageable regular amounts, or simplify the payment process of a regularly scheduled bill.

What are Recurring Payments?

Recurring payments are repeated payments, using an automated payment system to charge customers for a predetermined amount of month over a fixed amount of time. They’re a common payment type for a number of different things that you may already participate in on an ongoing basis. For example, if your auto or home insurance payments are withdrawn from your account on a recurring schedule, without your interference, you’re signed up for a recurring payment.

Businesses That Could Utilize Recurring Payments

Businesses that Accept Membership Fees like Gyms or Yoga Studios

Membership fees are a payment type that could be optimized by using a recurring payment system. When a new customer signs up to be part of the membership, businesses could also ask whether or not they’d like to join the recurring payment system, and get written consent for it. That way, customers don’t have to worry about bringing their wallet to their workout, and businesses can forecast their dollars in and dollars out better.

Weekly Service Providers like Cleaning Services or Dog Walkers

Weekly service providers like cleaning services and dog walkers are a great benefit to those who use them, but paying them can be difficult if their work happens while the customer is away. Recurring payments are a great solution for these businesses, as they ensure that payments are being made on time and on schedule without the concern of not seeing the customer.

Subscription Based Services like Streaming Platforms

For subscription based services, a recurring payment structure is likely the most simple way for customers to keep on top of their payment requirements. Recurring payments help to avoid any concerns of a disruption of service, particularly for subscription services that are online only, like music or television streaming that customers come to rely on.

Utilities

Utilities and the bills they come with are part of our everyday lives, which can sometimes make it easy to forget them if you’re not careful. Because of this, recurring payments are perfect for utilities companies. It simplifies the billing process and customers doesn’t have to worry each month about if they paid their latest bill.  

If you’re interested in learning more about different payment types, make sure to read our articles Should Your Business Accept Recurring Payments? and What To Expect From Payments in 2019.



The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed. 

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