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BUSINESS MODEL

27% of Consumers Increase Use of Subscription Services

Research by Paysafe has found 27% of consumers expect to see their subscription payments to increase into the next year. This indicates a growing reliance on subscription services by consumers for news, nourishment, education and other services.

According to the global research Lost in Transactions, the surge in demand was also partly due to COVID-19. This was because people opted to subscribe for service out of safety concerns. Subscriptions offer an easy way of getting badly needed goods and services without the need to return to the checkout counter. consumers are looking for simple and hassle-free shopping experiences. And as subscription model businesses meet this demand consumers are buying-in. In fact, 69% of Americans have multiple subscriptions, with 28% stating they have at least four subscriptions.

Lost in Transactions Survey on Subscription Businesses

Globally, 27% say they will increase their number of subscriptions. These include consumers in the US (36%), Italy (25%), Canada (23%) and the UK (21%). All giving subscription providers further reason for optimism.

The research canvased consumers in the US, UK, Canada, Germany, Austria, Italy and Bulgaria in April 2020. And the survey reveals two common threads, cost and convenience. Almost half (44%) of consumers agree subscriptions are a better value than other payment options for a similar service or product. A significantly more number (53%) agree subscriptions are a more convenient method of paying for goods or services they regularly use. Canada follows the US with the highest number of those with multiple subscriptions with 50% of them having multiple subscriptions. Others include Germany (49%), the UK (47%) and Austria (45%) who have multiple subscriptions.

Read more here.

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