HAMPSHIRE, U.K.–Reinforcing a message often heard in credit unions about the importance of getting a CU’s card to top of wallet, a new study from Juniper Research is predicting transaction value of recurring payments will exceed $15.4 trillion globally in 2027, from $13.2 trillion in 2023.
A recurring payment is any payment that is made on a repeating basis, regardless of payment method or billing cycle, such as to various subscription services.
“This relatively slow growth of 17% reflects that 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,” Juniper Research said. “As merchants struggle to keep their prices as low as possible, offering payment methods with lower processing costs is of critical importance and is driving change, as it is growing consumer enthusiasm for digital payment methods.”
Competitor Leaderboard Released
As part of the study, Juniper Research released its latest Competitor Leaderboard for 2023. “Underpinned by a robust scoring methodology, the new Competitor Leaderboard ranked the top 20 recurring payments platforms, using criteria such as the completeness of their solutions and their future business prospects,” the company stated.
It said the top 3 vendors for 2023 are Mollie, Zuora and Recurly.
“The research found that the leading players scored well based on their breadth of integrations with different payment options and their tracking and customizable payment plan capabilities,” according to Juniper. “In order to stay ahead of the competition, recurring payments platform vendors must develop solutions that support future-looking payment types as they are developed, such as Open Banking and CBDCs (Central Bank Digital Currencies), in order to stay relevant in the fast-moving consumer payments space.”
The Best Platforms
Added report co-author Nick Maynard: “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.”
For additional info: : Recurring Payments: Key Opportunities, Payment Methods & Market Forecasts 2023-2027, or download a free sample.
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