In the World of Commerce, Subscriptions Are On the Rise
In their 2019 Global Digital Commerce Benchmark Study, 2Checkout (an all-in-one monetization platform for global businesses) noticed some key trends based on the transactions running through their platform.
Basically, everyone is coughing up money for subscription based services.
The rise in subscriptions is no surprise, what with the recent influx of multiple types of pay-per-month models cropping up from various sources. From entertainment to niche box deliveries, the subscription service has experienced a boom in recent memory. According to 2Checkout, more than ¾ of their online sales from the last calendar month came from subscription purchases.
This rise in subscription based services also has a direct impact on the payment methods used. Credit cards are the preferred choice of payment, being 70 percent of global online sales. This metric is up two percent from last year.
The other highlights of the studies revolve around the countries of origin for the payments on the 2Checkout payment platform and the other forms of payments being used on the platform.
According to Erich Litch, President and Chief Operating Officer at 2Checkout, “We continue to see the subscription-based revenue model gain steam within the software industry as companies shift from one-time purchases to a recurring approach, reflected in the findings of this year’s benchmark report. This trend is coupled with the diversity of local markets and buyer preferences; therefore we will maintain our focus on delivering a monetization platform capable of supporting global commerce with a local approach as well as a variety of business, payments and subscription models.”
I don’t know when the subscription train will slow down, but it won’t be anytime soon. Everyone is making up a subscription model for their services. Subscriptions will drive the commerce world (at least 2Checkout’s world) for the near future.