Subscription billing is a business model in which customers pay a recurring fee, typically on a monthly or yearly basis, to access a product or service. This model is commonly used by software-as-a-service (SaaS) companies, streaming services, and other businesses that offer ongoing access to a product or service.
Subscription billing allows businesses to generate predictable revenue and build long-term relationships with customers. Customers benefit from the convenience of automatic payments and often receive discounts or other incentives for subscribing.
Subscription billing platforms, such as Stripe, Chargebee, and Recurly, make it easy for businesses to manage subscriptions, process payments, and handle other aspects of the subscription model. These platforms typically integrate with other tools, such as customer relationship management (CRM) systems and accounting software, to streamline the subscription management process.