More than ever, consumers’ use of automated payments to manage their subscriptions is gaining ground. That comes in tandem with more subscriptions than ever, across music, movies, media and more.
In the report, “Optimizing Subscription Payments: How Providers Can Take the Sting out of Payment Declines,” a PYMNTS and FlexPay collaboration, nearly 2,200 consumers said they want those payments to be seamless. And if those expectations are not met – in a world where 80% of U.S. consumers have at least one subscription, up from 72% a year ago– churn looms.
About 27% of consumers who subscribed to a broad range of services – overall, the average number of subscriptions across the entire user base PYMNTS surveyed stands at 2.3 – said they had experienced a subscription payment decline within the past year.
Of those who experienced a decline, more than one-quarter of those customers terminated their subscriptions or switched services.