How Recurring Payments Can Help Grow Your Business

As you get more customers day by day, it becomes harder to track every subscription or instalment that gets made throughout your business. It's hardly surprising that successful businesses of all sizes like utility providers, fitness centres and financial institutions are turning to recurring payments to automate regular transactions, freeing up precious time for their team to focus on priorities; and also to improve the customers' payment experience.

In this blog, we're continuing our recurring payments education series by sharing how this payment method can aid your business in long-term development and growth. In case you missed it, check out our first blog in this series to explore the basics of recurring payments and how you can make the most out of it.

So, how can recurring payments benefit your company—and in turn, your customers—in the long run?

1. Reduce customers' late payments

Often times with instalment or subscriptions, customers may end up forgetting to pay or even just forgetting to update their card information. Enabling a proactive recurring payment system allows your customers to just "set and forget" their payments. When coupled with active notifications to remind customers that their payments will be due soon, along with reminders to update their payment methods whenever any failures occur, this would greatly encourage timely repayments.

2. Improve cash flow consistency

Every business requires a steady cash flow to stay on top of its overheads. With the volatility of the economical climate, it's even more crucial to secure a consistent source of income. Recurring payments can guarantee that there is a dependable amount of cash coming into your enterprise on a month-to-month basis.

3. Minimise effort through automation

Ideally, every department in your company is able to generate positive output. However, if your teams are bogged down manually dealing with repeated payments, they would have less time to handle your growth objectives. By automating recurring payments, your teams can instead prioritise tasks like improving marketing efforts, providing excellent customer service, product research and development, and upskilling staff.

4. Heighten payment safety and security

Payment gateways used for processing recurring payments like senangPay are protected and regularly audited by financial authorities like Bank Negara Malaysia (BNM) and comply with regulatory bodies such as PCI DSS (with senangPay even achieving the highest level assessment of PCI DSS Compliance Level 1) to prevent data integrity compromises. By enforcing a secure payment process, not only are you creating a trustworthy image for your organisation, but your other payment methods are also safeguarded by virtue of using the same payment gateway.

5. Enhance long-term customer retention

Automatic deductions for recurring payments also streamline customer payments. As mentioned above, the "set and forget" benefit also means that your customers need to take less actions when making monthly payments. This refined customer experience leads to an increased rapport between you and them, meaning they are more likely to continue frequenting your business.

Conclusion and next steps.

The benefits of recurring payments for both you and your clientele cannot be overstated. Alongside expanding your payment options to accommodate your customers' preferences, your store will also be able to enhance the customer's payment journey, enhance payment security and enable long-term scaling with consistent cash flow.

If you're uncertain if your business is suitable to take advantage of recurring payments, we suggest you give our previous blog in this series a read. Once you've decided that you want to enable this payment option, we recommend checking out senangPay's packages to begin strengthening your payment journey today.

For a quick summary of how senangPay's recurring payments work to simplify your payment collection, please watch our short video below.

Watch this space in the coming weeks as we wrap up with the final part of this education series as we explore how you can safely and efficiently integrate recurring payments into your business.