The recurring payments market size has experienced substantial growth in recent years, projected to expand from $152.30 billion in 2023 to $166.69 billion in 2024, representing a compound annual growth rate (CAGR) of 9.5%. This growth in the historical period can be attributed to heightened concerns about data privacy, an increasing adoption of recurring payment models, digitalization of payments, a surge in streaming services, and rising demand for automated billing solutions. Looking ahead, the market is expected to continue its upward trajectory, reaching $240.13 billion by 2028, with a CAGR of 9.6%. Factors driving this growth include the rise of subscription-based business models, growing adoption of payment platforms, a preference for seamless payment methods, the digital transformation of businesses, and the surge in online commerce and mobile payments. Notable trends anticipated in the forecast period include advancements in payment technologies, innovation in security solutions, and the integration of digital payment methods and mobile payment applications.
Major Driver In The Recurring Payments Market
The rising adoption of subscription-based business models is expected to propel the growth of the recurring payments market moving forward. Subscription-based business models involve customers paying recurring fees for continuous access to a product or service. This trend is increasing due to the models’ capacity to provide predictable revenue streams, enhance customer loyalty, and offer consumers convenient access to products and services without the need for large upfront costs. Recurring payments are essential for subscription-based business models as they ensure steady and predictable revenue, reduce administrative overhead for billing, and improve customer retention through convenience and service continuity. For instance, in February 2022, Whistl UK Ltd, a UK-based shipping company, reported that 81% of individuals subscribed to at least one service in 2021, a significant rise from 65% in 2020. Therefore, the growing adoption of subscription-based business models is driving the growth of the recurring payments market.
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Recurring Payments Market Competitive Landscape
Major companies operating in the recurring payments market are Apple Inc., AT&T Inc., American Express Company, PayPal Holdings Inc., Square Inc., Stripe Inc., Adyen N.V, Klarna Inc., Zoho Corporation Pvt. Ltd., Recurly Inc., Elavon Inc., Odoo S.A., GoCardless, Chargebee Inc., QuickBooks, Zuora Inc., Braintree, Dwolla Inc., BlueSnap, Practice Ignition Pty Ltd., PayStand Inc., FastSpring Inc., Authorize.Net, JustOn GmbH
Key Recurring Payments Market Trend
Major companies in the recurring payments market are concentrating on creating advanced payment solutions, such as AI-powered recurring payments systems, to improve transaction efficiency and deliver personalized payment experiences for customers. An AI-powered recurring payments solution utilizes artificial intelligence to automate and optimize recurring transactions, enhancing efficiency, minimizing errors, and offering personalized payment schedules based on customer behavior. For example, in June 2024, Trustly AB, a Sweden-based consumer banking company, introduced an AI-powered recurring payments solution aimed at streamlining subscription transactions for merchants. This innovative offering enables businesses to accept recurring payments directly from customers' bank accounts, significantly decreasing reliance on traditional payment methods like cards and direct debits. It incorporates advanced fraud prevention measures, including biometric authorization and verified payment credentials, to ensure transaction security.
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Global Recurring Payments Market Segmentation
The recurring payments market covered in this report is segmented –
1) By Component: Services, Payment Platform
2) By Payment Type: Fixed, Variable
3) By End Use: Business-To-Business, Business-To-Consumer
By Geography:The regions covered in the recurring payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the recurring payments market in 2023.
The Recurring Payments Global Market Report 2024 furnishes information about the global recurring payments market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
