North America Subscriptions and Recurring Payments Market 2021

North America Subscriptions and Recurring Payments Market 2021

  • September 2021 •
  • 56 pages •
  • Report ID: 6154083 •
  • Format: PDF
Subscriptions and recuring payments are set to grow in size post COVID-19

The latest publication “North America Subscriptions and Recurring Payment Market 2021” provides insights into the current state and developing trends of the subscriptions and recuring payments industry across the globe and in North America specifically. The publication reveals that due to the pandemic in 2020, consumers realized benefits of such purchasing methods and the practice is here to stay post-COVID-19.

Amid COVID-19, consumers worldwide realized benefits of subscriptions and increasingly adopted them

Globally, after the onset of the COVID-19 pandemic, around two-fifth of consumers subscribed to new products and services to adapt to the changing situation, and despite the economic downturn, just a low percentage of consumers cancelled or downgraded their existing subscriptions. Moreover, consumer spending on the top one hundred subscription applications rose by at least 30% globally, and by over 25% in the United States. With that, many online enterprises are finding the benefits that subscription purchasing agreements provide, such as revenue predictability, which in turn improves future business planning. However, before incorporating subscriptions into their profile, companies have to choose an appropriate business model. So-called “Subscription Box” is one of the most popular ones to date, but there are also some other that may be even more suitable for certain firms, as detailed in the new publication. Additionally, it is also essential to learn which metrics to consider when evaluating subscriptions; one important metric is customer lifetime value.

Subscriptions spiked in the United States in 2020

In the United States, between 2019 and 2020, the subscriptions market revenue rose by over 25%, and as during the pandemic and the trend is clearly here to stay post-COVID-19. When it comes to the product and service categories, especially pronounced was the market growth rate in the sector of consumer retail products and digital media, as subscription services account for well over half of music industry revenue. Among the subscription service providers, free trials, appeared to be uncommon though the top 30 performers in the industry realize the importance the most. Furthermore, among the payment service providers offering recurring payments for subscriptions in the United States, Square and PayPal stood out in a recent assessment of PSPs cited in the new market report.

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