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How Smart Subscriptions helps merchants

Drive growth and retention by empowering consumers to change plans, receive offers, cancel, resubscribe and unblock card payments. Consumers gain control, convenience and flexibility from a more transparent, frictionless experience.

Subscription tools that retain and grow business

Managing multiple subscriptions across different platforms has become challenging. Equally, the number of subscription services available has caused increased competition and requires merchants to enhance growth and retention strategies. Digital banking channels have emerged as an opportunity to help address these challenges.

85% of consumers want a better subscription experience

and want to view and manage their subscriptions in their bank app

The average US consumers spend over $1,400 per year

on subscriptions and have over 8 subscriptions on average

Up to 20% of consumers frequently churn

but return within 6 months, driving the need for seamless cancellation and resubscribe

Subscription challenges

Unnecessary payment stops preventing resubscribes. Regulatory pressures are fueling a rise in payment stops as a default method for subscription cancellation, preventing consumers from resubscribing, impacting secondary subscriptions and purchases, and causing subscriptions to be blocked mid-way through contracts. 

Growing chargebacks and operation costs. Consumers are increasingly raising disputes for legitimate subscription charges due to lack of control and visibility over their subscription purchase or merchant information, as many consumers tend to ‘set and forget’, causing confusion, frustration, increased support calls and disputes.

Increasing consumer churn and competition. The growth of the subscription economy has intensified competition with new entrants competing for a share of consumer spend. This has increased focus on retention strategies, highlighting the need for merchants to explore new opportunities to protect and grow revenue.

How to solve them

Seamless subscription management to prevent payment stops. Replace payment stops as the default subscription cancellation method with a streamlined subscription management experience that reduces unwanted payment disruptions and enables consumers to seamlessly resubscribe and continue to engage with the merchant without friction.

Offer an experience which mirrors native channels. Reduce unnecessary chargebacks from consumers attempting to cancel their subscriptions through enhanced control and flexibility which promotes transparency and offers a frictionless self-serve experience akin to native channels, helping reduce chargebacks and support overhead.

Drive retention and re-acquisition with increased flexibility. Reach and engage millions of global customers in digital banking channels through an expansive network of financial institutions. Empower consumers with flexible alternatives to cancellation and help protect and grow recurring revenue with tools like retention offers and change plan and pause.

We are thrilled to kickstart this strategic partnership and see this as just the beginning. We are looking forward to incorporating Ethoca’s additional capabilities around defining cancellation flows within banking apps and other broader retention features.

CEO Aptitude Software

Want to learn more about how Smart Subscriptions can help grow your subscription business?

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Ethoca Consumer Clarity Smart Subscriptions is powered by Minna Technologies AB (registration number 556967-5449), which is an Account Information Service Provider (AISP) registered with the Swedish Financial Supervisory Authority (SFSA), providing PSD2-compliant financial data access with top-tier security and regulatory oversight. For more information on the registration, please visit here. For more information on the European Commission consumer rights, visit here.