Orchestrating subscriptions
- Lennart Koopmans
- January 20, 2022
How Magnius supports recurring payments
Traditional subscriptions have undergone a major overhaul in the recent years.
It is not an exaggeration to say that almost everything seems to be available as a subscription today. And this is not surprising. The benefits of subscription models are clear. Customers demand the reliability and predictability of receiving their shaving supplies, meal kits alongside their gym access, streaming media and news. The merchants and platforms offering these subscriptions benefit from this with higher customer retention and more predictable revenue streams. It is also not surprising that the payments process that support subscriptions are complex.
Subscription payment problems
Subscription Management Services
So why not just use a subscription management service? Many organizations do, and very successfully with one provider. But with payments orchestration through the platform of Magnius you have a great additional layer in the process that further enables payments flexibility and the freedom of choice for choosing the best PSP in the best situation.
An example of where this flexibility might be needed would be with a merchant selling subscriptions as well as one-time purchase items. The subscription management service isn’t needed for the one-time purchase. Payments Orchestration can often be the best tool to integrate with the right combination of services needed for the unique mix found in each customer’s purchase.
Additionally, many subscription management services also leverage Payments Orchestration to help them easily add more value-added services to their platform. For a recurring billing platform who is typically working with large and growing merchants, they need to be able to easily connect to the merchant’s current gateways, PSPs, alternative payment methods, fraud vendors, etc.