Non-traditional sign-up products and services are expected to fuel the next wave of subscriptions, according to a report from Barclaycard Payments.
Its report found that 68% of businesses that currently offer subscriptions will expand their portfolios before the end of the year.
It claims this growth is being driven by subscriptions in new sectors. It stated that 76% of DIY & home improvement companies, 73% of homeware & furniture businesses, 73% of department stores and 69% of technology businesses plan to launch new subscription offerings, all above the industry average of 61%.
Furthermore, of businesses that do not currently offer subscriptions, many report plans to invest in new offerings, with 50% of technology companies planning to launch at least one new sign-up product or service in the next year.
Barclaycard highlighted that as the cost-of-living rises, 51% of businesses that offer subscriptions are planning price cuts to attract shoppers.
In a similar vein, businesses are looking to diversify into new areas to increase sales. It said that 61% are creating subscriptions designed to be purchased as presents in time for the festive season. This comes alongside a stat that 38% of Brits also said they plan to gift a subscription product or service to their loved ones.
Barclaycard Payments head of online payments Harshna Cayley said, ?While the growth of some subscriptions has tailed off following the pandemic, demand remains strong for services which make our lives easier and provide good value of money.?
?Our data indicates higher-value products such as furniture and technology are where new growth is coming from, rather than more traditional areas like entertainment and meal kits. Although phone subscriptions have been around for many years, more recently weve seen packages for wearable devices, coffee machines, bicycles and even robotic vacuums all start to take off. Businesses who diversify by tapping into how consumers want to pay for, and renew, more expensive items will be best placed to thrive as the subscription economy evolves.span>
Earlier in the year, dutch payment service provider Mollie partnered with subscription management platform Chargebee to help simplify subscription payments.
Copyright ? 2022 FinTech Global
