The subscription-based business models are breaking the records of revenue nowadays because they are online. Initially, subscriptions were only meant for libraries where people borrow books after getting a membership for a certain period of time. With the evolution in technology, subscription businesses adopted online platforms and now they are among the most promising investments for profit. This business model is at its development stage and facing some challenges such as:-
- Interruptions in automated invoicing
- Auto-renewal service doubts
- Customer management
- Payment security issues
- Pricing management of plans for different locations
- Transactions failure or late transactions
- Promotional offers and discounts management
- Multi-currency issues
- Payment acceptance gateway integration problem
While searching for the most feasible solution, we finally landed on blockchain technologies. Let me elaborate on how blockchain is empowering the subscription revenue model for online businesses.
Blockchain technology significance for recurring payment businesses
- No more cybersecurity threats
Cybersecurity threats are the main reasons why people hesitate to opt for auto-renewal subscription plans. Nobody wants to submit his personal account details without assurance of security. Blockchain is currently the most robust digital ledger which is nearly unbreakable. Hackers cannot gain access to the information stored in the digital ledger of the blockchain.
- Easy plans management
While expanding your business globally, plans management becomes the biggest challenge for subscription-based models for services. Currency values differ from country to country. In order to solve this problem, blockchain payment acceptance gateways allow users to pay in cryptocurrency. The value of cryptocurrency remains the same throughout the world. Also, these gateways allow the users to pay in any currency and it will automatically convert into crypto money while moving to your digital wallet.
- Easy to integrate
As compared to other payment acceptance gateways for subscription businesses, blockchain technology is very easy to integrate. Some companies are providing universally compatible plugins to integrate with websites and mobile applications. Also, it requires small HTML code lines for integration already provided by the companies. Blockchain is more reliable as compared to SSL.
- Blockchain is free
Along with high reliability, the best thing about blockchain, it is an open source technology. You don’t have to pay to utilise the potential of blockchain. Service charges are only asked by the companies providing software applications to integrate with your mobile app.
- Fast payments processing
As compared to any conventional payment processing module, blockchain is much faster. Even for international transactions, it hardly takes a fraction of a few minutes. You don’t have to wait for days or weeks for reflecting balance in the account.
- Maintain customer privacy
This membership revenue model is also beneficial for customers from the perspective of privacy. Instead of complete personal information, customers have to reveal only public key blockchain transactions.
Most successful online subscription business models right now:
- Online streaming services
OTT platforms are among the fastest growing businesses. People are showing interest in online streaming services because of the variety of content and ease of accessibility. This subscription business is still at the development stage and going to transform the entire entertainment business.
- Food delivery
Food delivery services are also adopting subscription plan strategies to engage their customers for a long time. Weekly or monthly plans of food delivery are getting popular in small and big cities nowadays.
- Health and wellness subscription
Auto renewal subscription business model companies are also entering the health and wellness sector. It covers a wide criteria including gyms, spas and regular health checkups.
- Car Rental
A lot of people prefer to rent a car instead of owning it. As car ownership is declining globally since 2018, a bright scope for subscription based car rental business is appearing.
While opting for blockchain based requiring payment services, make sure that the company is certified and provides 24X7 technical assistance.