Ecommpay enhances recurring payments, boosting renewal rates by 3%
Enhancements to the Ecommpay Subscriptions service aim to tackle the problem of failed recurring payments for businesses operating across subscription and recurring billing models.
UK consumers are estimated to spend around GBP £29.5 billion each year on subscriptions and recurring payments.
This model provides flexibility and convenience for a wide array of services, including streaming entertainment, food delivery, travel, and financial products. However, merchants frequently encounter involuntary churn due to unsuccessful payments, typically arising from expired, replaced, or reissued cards.
The latest updates to the Ecommpay Subscriptions service target these challenges by providing features such as network tokenisation, real-time card updates, and support for a wide range of payment methods.
These tools allow mid-sized and enterprise merchants to manage the full subscription lifecycle more effectively. With automatic token updates built in, the service aims to reduce the necessity for customers to re-enter card details after expiration or card loss.
According to insights provided by Ecommpay, merchants taking advantage of the new features have achieved up to a 3% improvement in renewal rates, translating directly into additional revenue and reduced customer churn.
The network tokenisation in particular has been highlighted as a significant contributor to payment success, though it does not fully eliminate all payment failures.
"Our merchant clients are increasingly seeking simple and effective ways to process and manage their recurring payments. In response, we have built a flexible solution that integrates multiple recurring payment methods within a single platform, which can be tailored to meet the payment flow needs of each business.
Clare Haskins, Head of Revenue Operations at Ecommpay, explained further that automation is central to the platform's value.
"Automatic token updates and recurring re-tries ensure recurring payments are streamlined and efficient. It's a simple switch for merchants that delivers long-term gains in customer lifetime value, trust, and operational efficiency."
The updated Ecommpay Subscriptions suite supports recurring payments via Apple Pay, Google Pay, Visa, Mastercard, PayPal Subscriptions, and regional direct debit systems like BACS and SEPA.
This broad spectrum of payment method support is designed to serve a variety of sectors, including retail, digital media, travel, education, and financial services. Merchants can manage all recurring transactions through one platform, and the system can be integrated with existing merchant infrastructure to improve payment outcomes.
Additional operational improvements are made possible by the integrated data API and dashboard tools, which allow for the automation of workflows and the management of payment links between merchant systems.
Ecommpay's payment infrastructure is built with international coverage in mind, offering connections to over 100 alternative payment methods which supports merchants with global customer bases.
The service also maintains industry compliance, including PCI DSS Level 1 certification, and offers compatibility with regulatory standards such as the revised Payment Services Directive's Strong Customer Authentication requirements. These compliance measures ensure that merchants maintain a secure environment for processing payments while remaining aligned with industry expectations.
As a result of these enhancements, Ecommpay states that merchants benefit from more stable recurring revenue streams and a reduction in operational inefficiencies related to chasing failed payments. Clients are also positioned to benefit from strengthened customer relationships by minimising interruptions to their service due to payment failures.
The changes are designed to support businesses operating subscription models as they look to optimise recurring payment success and reduce involuntary churn, particularly as consumer spending in this space continues to rise.
