Efficiency + Security: The advantages and challenges of Recurring Payments

Created 24 May 24

Internet service providers are aware that managing collections is one of the most complex tasks they face. Additionally, there are fundamental aspects that cannot be overlooked, such as ensuring a healthy revenue flow, keeping delinquency under control, and managing monthly payments. Failing to maintain thorough control over each of these points could lead to revenue leaks and jeopardize the business.

Currently, recurring payments have become a very attractive option for managing collections, as they provide operational security for both companies and end users.

This payment method offers a wide range of advantages and opportunities, from financial predictability to the inherent complexities in business management.

Why do recurring payments contribute to business management?

  • Financial predictability: Recurring billing allows for a fixed and secure income stream. This is one of the strengths of automatic payments, as it eliminates the uncertainty of non-payment while also providing scalability and projection for the business.
  • Reduction of delinquency: Automating the payment process helps reduce delinquency. This method prevents customer forgetfulness and delays, ensuring that accounts are paid on time, which favors a healthy portfolio and sound financial health.
  • Better customer experience: Operating with recurring payments is highly beneficial for users. Simplifying repetitive and manual tasks always contributes to a smoother experience, which positively impacts the perception of the product and brand.
  • Operational efficiency: Automating payment processes also offers significant internal advantages for the company. By reducing the time and resources dedicated to manual tasks such as billing and reconciliation, there is more room for a strategic and comprehensive perspective in business development and expansion. The goal is to progressively increase revenue without raising the costs associated with management.

Overcoming obstacles: Challenges of the recurrence model

While recurring payments offer numerous advantages, they also face significant challenges. One of them is data security, given the increasing risk of fraud and privacy attacks. In this regard, companies have the responsibility to partner with specialists who develop secure solutions to ensure the protection of customers' sensitive information.

Automatic payments can also fail, and this is a very common issue in the recurrence field. The reasons? Expired cards, suspicious activities that may indicate possible fraud, or insufficient funds. Each of these situations affects companies operating under this model, which can result in customer loss, affect their experience, and complicate the internal work of the team.

The good news is that there are companies like Bemobi that develop automated solutions to manage these failures. Additionally, they offer intelligent retry functionalities, adapting to the user's specific situation. They even allow the customer to request another payment profile, thus increasing the chances of successfully completing the transaction.

According to research by Opinion Box, a Brazilian company specializing in market analysis and information, 68% of respondents stated they have subscriptions to digital services. Additionally, 23% of the same base reported that they not only subscribe to digital items but also to physical services. Overall, people are increasingly accustomed to recurring payments.

It’s a fact that the future will be increasingly digitalized, and to make the most of it, companies must move in this direction to improve their payment methodologies. By partnering with good allies, specializing in new digital tools, and thoroughly understanding customer needs, they can fully leverage the potential of this technology.

If you want to learn more about Bemobi's solutions for Internet Service Providers (ISPs), we invite you to complete the following form, and we will contact you as soon as possible.