Subscriptions

Subscription products let you offer recurring billing for memberships, SaaS, or ongoing services. Flexible billing cycles, free trials, and add-ons help you maximize revenue and customer value.

Understanding Subscriptions

A subscription represents a recurring payment agreement between you and your customer. When a customer subscribes to your product, they agree to be billed periodically (daily, monthly, yearly, etc.) until they cancel their subscription.

Scenarios where subscription-based payment models are applicable include the following:

1. Digital Services and Platforms: Ideal for software-as-a-service (SaaS) providers, online tools, and apps (e.g., project management software, cloud storage services, or design platforms), where users benefit from continuous access and updates.

2. Content Streaming: Essential for businesses offering media content, such as video streaming (e.g., Netflix), music streaming (e.g., Spotify), or podcast platforms, where users consume content over time.

3. E-Learning and Online Education: For platforms providing online courses, training modules, or skill development resources (e.g., Udemy, MasterClass), allowing customers to pay for ongoing access to learning materials.

4. Health and Wellness Services: Fitness apps, meditation platforms, and telemedicine solutions often employ subscription models to provide continuous access to personalized plans, live sessions, or resource libraries.

5. News and Digital Publications: For digital newspapers, magazines, and blogs offering premium or exclusive content behind a paywall (e.g., The New York Times, Medium).

6. E-Commerce Subscription Boxes: Ideal for curated products delivered regularly (e.g., beauty, food, books, or lifestyle boxes). It provides convenience and recurring value to customers.

7. Utilities and Infrastructure: Applicable for products like internet services, VPNs, or cybersecurity tools that require ongoing support and maintenance.

8. Gaming: Video game platforms offering premium memberships or access to exclusive content, like Xbox Game Pass or PlayStation Plus, benefit from the subscription model.

9. Professional Services: Tools for freelancers or businesses, such as invoicing platforms, CRM software, or graphic design tools, often employ subscriptions for consistent updates and support.

10. IoT and Smart Devices: Smart products like security cameras, virtual assistants, or connected home appliances may offer subscriptions for remote access, cloud storage, or advanced features.

11. Lifestyle and Membership Clubs: Gyms, co-working spaces, or clubs for specific interests (e.g., wine, coffee, books) leverage subscriptions for consistent cash flow and community engagement.

Subscription-based models work well in scenarios where ongoing access, regular updates, or recurring service is central to the product's value. They foster long-term customer relationships and create predictable revenue streams for businesses.

Key Concepts

Subscription Status

A subscription can be in different states throughout its lifecycle:

• Active: The subscription is current and payments are being processed normally

• Past Due: A payment attempt has failed but the subscription is still active and retrying.

• Canceled: The subscription has been terminated

• Paused: The payment collection for this subscription is paused until you resume it.

• Trialing: The subscription is in a trial period before the first payment

• Incomplete: The subscription and checkout session was created but not paid

Billing Cycles

Subscriptions operate on billing cycles that determine when payments are collected. You can set up various billing intervals:

• Daily billing

• Weekly billing

• Monthly billing

• 3 Months billing

• 6 Months billing

• Yearly billing

• Custom intervals (2 months, etc.)

Creating a Subscription

To create a subscription, you’ll need to:

Step1: Set up a subscription product in your dashboard

Step2: Generate a checkout session for the subscription

After successfully creating your product, you can copy the payment link by clicking on the product Share button.

Or with checkout sessions generated dynamically instead of just using a static payment link.

For more details on checkout session options, navigate to our Checkout Session

Step3: Direct your customer to the checkout URL

Managing Subscriptions

For customers

• Update billing details: Customers can update their payment method through the customer portal

• Cancel subscriptions: Customers or merchants can cancel at any time, through the Dashboard, customer portal or APIs

For merchants

• Seat Based Billing: Merchants can update the usage of a specific subscription based on seats or units through the Dashboard or API

• Change prices: Merchants can update the price of a subscription, that takes into effect in the next billing cycle

• Change subscription product: Merchants can modify the products within a subscription, often utilized to assist customers in upgrading or downgrading their subscription plans.