Half of consumers have at least two subscriptions despite lock-in fears

Half of consumers now have at least two subscription payments leaving their account every month, with more than a quarter (27 per cent) expecting that to rise within the next year, according to new research.

A survey of 8,000 consumers in the UK, US and European countries for Paysafe found that despite the surge in subscriptions to services such as Netflix, Spotify and Amazon Prime, nearly half (46 per cent) said they worry that subscriptions can be difficult to cancel and make them feel tied to long-term commitments.

More than a third (35 per cent) of consumers admitted to overpaying for a subscription service that they have stopped using but failed to cancel.

The research found that the motivations behind subscription-based payments vary, but mostly centre around cost and convenience. A total of 44 per cent of consumers agreed that subscriptions were better value than other payment options for a similar service or product.

Additionally, just over half (53 per cent) of consumers agreed that subscriptions were a more convenient method of paying for goods or services they regularly use.

Daniel Kornitzer, chief business development officer at Paysafe, said: “The burgeoning subscription economy is driving traditional pay-per-product companies to move to subscription-based models.

“However, it is clear from our research that companies currently offering or considering offering subscription-based payments should factor in a high degree of customer flexibility and transparency to their service offering," he continued, adding: "Do this successfully and companies can simultaneously increase consumer trust and alleviate common pain points often experienced with subscription-based payments, such as consumers overpaying or feeling like they are trapped into a long-term financial commitment.”

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