The transaction value of recurring payments will exceed $15.4trn globally in 2027, rising from $13.2trn in 2023, according to a report from Juniper Research.
It attributes the slow growth of 17% to the fact recurring payments are a well-established market, but also disguises a rapid change of payment methods in the space, with open banking and digital wallet payments outstripping overall growth.
A recurring payment is any transaction that is made on a repeating basis, regardless of payment method or billing cycle.
As part of its research, Juniper updated its Competitor Leaderboard for 2023, which ranks the top 20 recurring payments platforms. The top three vendors were Mollie, Zuroa and Recurly.
Companies at the top of the list had a wide spread of integrations with different payment methods and deep tracking and customisable payment plan capabilities.
To stay ahead of the market, Juniper claims recurring payments platform vendors need to build solutions that support future-looking payment types as they are developed, including open banking and CBDCs.
Report co-author Nick Maynard said, “For merchants, they want to be able to bill their clients on a recurring or one-off basis, with the ability to create custom plans that match customer requirements, not the system capabilities. Those platform vendors offering an agile, API-based system will best meet these requirements and succeed in this highly competitive market.”
The findings come from Juniper’s new ‘Recurring Payments: Key Opportunities, Payment Methods & Market Forecasts 2023-2027’ report.
A recent report from Juniper Research around CBDCs claimed that the total global annual value of payments through these tokens will reach $213bn by 2030.
Another research piece from Juniper found that the global revenue from embedded payments for embedded finance vendors will reach $59bn in 2027, rising from $32bn in 2023.
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