The “Recurring Payments Market Report 2024” report has been released by ResearchAndMarkets.com.
This Recurring Payments market research report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market.
The recurring payments market size has “grown strongly” in recent years.
It will grow from $152.3 billion in 2023 to $166.69 billion in 2024 “at a compound annual growth rate (CAGR) of 9.5%.”
The growth observed during the period can be “attributed to several factors, including concerns about data privacy, increased adoption of recurring payment models, greater digitalization of payments, a surge in the adoption of streaming services, and growing demand for automated billing solutions.”
The recurring payments market size is expected “to see strong growth in the next few years. It will grow to $240.13 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%.”
The projected growth during the forecast period can be “attributed to several factors, including the rise of subscription-based business models, the increasing adoption of payment platforms, a growing preference for convenient and seamless payment methods, ongoing digital transformation in businesses, and a rise in online commerce and mobile payments.”
Key trends expected during this period include “advancements in payment technologies, innovations in security solutions, development of advanced security measures, technological advancements, integration of digital payment methods, and the incorporation of mobile payment applications.”
The rising adoption of subscription-based business models is “expected to significantly boost the growth of the recurring payments market.”
Subscription-based models involve “customers paying recurring fees for ongoing access to a product or service.”
This model is gaining traction due to its ability to provide “predictable revenue streams, foster customer loyalty, and offer consumers convenient access to products and services without substantial upfront costs.”
Recurring payments are crucial for these models as they “ensure a steady and predictable revenue flow, reduce administrative overhead related to billing, and enhance customer retention by offering convenience and continuity of service.”
For example, in February 2022, Whistl UK Ltd, a UK-based shipping company, reported that “81% of people subscribed to at least one service in 2021, up from 65% in 2020, highlighting a significant increase in subscription adoption.”
This trend is driving the growth of the recurring payments market.
Companies in the recurring payments market are “developing advanced payment solutions, such as AI-powered recurring payments systems, to enhance transaction efficiency and deliver personalized payment experiences.”
An AI-powered recurring payments solution “utilizes artificial intelligence to automate and optimize recurring transactions, improving efficiency, minimizing errors, and offering customized payment schedules based on customer behavior.”
For instance, in June 2024, Trustly AB, a Sweden-based consumer banking company, introduced “an AI-powered recurring payments solution designed to streamline subscription transactions for merchants.”
This solution enables businesses to “accept recurring payments directly from customers’ bank accounts, reducing dependence on traditional payment methods such as cards and direct debits. It features advanced fraud prevention measures, including biometric authorization and verified payment credentials, to ensure transaction security.”
In August 2023, Trustly AB acquired SlimPay SA for $75 million. This acquisition aims to enhance Trustly’s capabilities in the European recurring payments market “by integrating SlimPay’s SEPA direct debit expertise with its account-to-account payment technology.
The deal is expected to streamline subscription management, “accelerate the rollout of Trustly’s new Azura payment engine, and capture a larger market share.”
SlimPay SA, based in France, “specializes in recurring payment and subscription management.”
North America was the “largest region” in the recurring payments market in 2023.