Streamlining the Subscription Economy: Visa’s fresh approach to digital payment management

Subscription services have become an integral part of our daily lives. From streaming platforms to meal delivery kits, consumers are navigating a complex landscape of recurring payments. Recognizing the need for better management tools, Visa has stepped up with its innovative Subscription Manager solution. This service aims to provide cardholders with a centralized view of their subscriptions, offering newfound control and transparency.

To learn more about this new offering, we spoke with Kathleen Pierce-Gilmore, the global head of Issuing Solutions at Visa. In this interview, Pierce-Gilmore discusses the driving forces behind Subscription Manager’s development, its key features, and how it fits into Visa’s broader strategy for enhancing digital payment experiences. She also shares valuable perspectives on consumer trends and the future of digital money management.

What drove the decision to create Subscription Manager? What specific pain points were you aiming to address for consumers in the subscription economy?

We all have numerous subscriptions – for loyalty programs, streaming services, food prep services, retail delivery, and more. As the global subscription market is poised to hit nearly $1T by 2028, consumers are seeking better control over where and when their money is going. Our Subscription Manager solution, a comprehensive service for financial institutions, provides Visa cardholders with a straightforward way to manage and track their subscriptions. This service eases the pain point of navigating each platform’s unique terms and unnoticed charges by offering a 360-degree view of recurring payments in one place. It allows cardholders to see where their card details are stored, view which recurring payments are attributed to their card, and stop recurring payments.

How does Subscription Manager improve transparency and control for cardholders compared to existing methods of managing subscriptions? What are the key differentiators?

Subscription Manager enhances transparency and control for cardholders by centralizing all subscription payments in one place, reducing the need to navigate different apps individually. It offers a 360-degree view of recurring payments, enabling cardholders to easily see where their card details are stored, view which payments are linked to their card, and stop recurring payments when needed. Since banks can offer Visa’s subscription management capability through their app, cardholders can continue going to one place for their banking and payment needs.

Visa made merchants get consent after free trials in 2020 – how does Subscription Manager build on that for an improved end-to-end experience?

Back in 2020, Visa required that all merchants get explicit consent from customers before billing after free trials. This was done to protect cardholders and improve their payment experience. The new Subscription Manager capability is an extension of this commitment – where we will also make it easy for cardholders to see all existing subscriptions, review upcoming bills, and stop payments through their bank’s digital app.

You mentioned forthcoming Visa research showing that 63% of consumers are comfortable with an all-digital money future. How does a tool like Subscription Manager help accelerate that shift?

Correct! In our 2024 Consumer Segment Analysis report, we shared that 63% of consumers are comfortable with a future where all money is digital, and creating tools like Subscription Manager can help accelerate that shift by creating simplicity and accessibility for consumers who are turning to apps and mobile wallets to manage their finances. 

Can you walk through the process of how Subscription Manager integrates with banks/issuers and gets deployed to cardholders? What’s required from issuers?

Subscription Manager is like a toolbox for banks that brings together different tools (in this case, Visa’s APIs) needed for managing subscriptions into one package. It simplifies things like recurring payments, allowing cardholders to easily track where their card details are used, see what payments are linked to their cards, and stop payments if needed. It’s easier and quicker for banks to implement because it comes with an optional pre-built user interface and a single point of integration. This means less work for the banks, faster deployment, and a smoother experience for cardholders who can view and manage all their subscriptions directly within their bank’s app.

Beyond tracking and cancelling, are there plans to add more subscription management capabilities like swapping payment methods, negotiating deals, etc?

We will continue to invest in and extend our subscription manager capabilities, including capabilities to help facilitate a dialogue between consumers and merchants as both are important stakeholders across our network.We are always looking to expand our offerings to meet the evolving needs of our cardholders and issuers. This commitment to enhancing digital experiences is a part of our broader Digital Enablement product suite, which comprises a variety of tools and solutions designed to empower banks and provide exceptional services to our cardholders.