While one-time purchases are the most common business model for most small businesses, subscriptions are gaining ground among entrepreneurs. But setting up a system to process recurring payments has always been a very complex task, involving development and code. This article will see how to use PayForm, a no-coding tool, to create checkout forms that can help your business to easily process recurring payments.
Why would I want to process recurring payments?
Subscriptions are popular. Businesses like insurance, media consumption, direct-to-consumer products, and even e-learning are shifting to recurring payments. And this is because this type of business model has several advantages over others. Some of the advantages that we can enumerate are the following:
- Increase customer retention: Giving an option to set-and-go, diminishes friction from subsequent payments, increasing retention and diminishing churn. This is very important in industries like entertainment or direct-to-consumer.
- Income predictability: Using subscription models, it’s easier to achieve predictability in the income your business will receive at the end of the month (the monthly recurring revenue or MRR). This predictability can also help your business save on administrative costs.
- Higher LTV: Users who are in subscriptionf models, usually pay more during their lifetime, than a one-time purchasers. This increase of income can be up to a 60% compared to a regular one-time payment business.
While these are not the only advantages, it shows why your business should evaluate to process recurring payments. Businesses like Netflix understand this, creating a business based on users making monthly payments to receive content in return, instead of being simply a store that sells movies.
How can I implement subscriptions in my business?
The most common way to implementing a subscription payments system in your business is to develop a custom-made solution for your use case. This has several disadvantages, like having to achieve PCI compliance yourself. This is a complex scenario that may involve tight integration with your payment gateway in order to achieve it.
A second option is to use a ready-made solution like Stripe Billing. But integrating this type of solution also requires code. Luckily, there are no-code solutions that allow you to ease the integration process off recurrent payment gateways easily. One of these solutions is PayForm.
Using PayForm to process recurring payments
The first step to start using PayForm is to create a free trial account. The platform gives you a 7-day free trial that you can use to explore everything the platform has to offer. You will be guided to create your first payment form and connect one of our supported payment gateways. All in less than a couple of minutes.