Member Exclusive, Payments

‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth

  • As more consumers started subscribing to various purchases during the pandemic, Recharge saw its own growth in revenue.
  • But are subscription services enough to stand on as a payments company?
close

Email a Friend

‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth

Covid has reshaped shopping, not only in terms of going online to buy stuff, but also in terms of how consumers go about these purchases. 

The Amazon-minted one-click buy is not the only thing that’s in vogue, it seems. The subscribe button is clicking with consumers more than ever. 

In just under a decade, subscription business revenue grew by 437%, according to a survey by Zuora, a subscription software provider. The global subscription e-commerce market is estimated to reach a market size of $478 billion by 2025, growing at a CAGR of 68% during the forecast period 2019-2025, according to a report by WiseGuy Research Consultants.

When there are so many unknowns floating around, people may seek comfort in brands they already recognize and trust. That whole sense of serendipity you have when you go to a physical store is sort of lost in an online setting, And in that case, consumers may just be looking for a shortcut to get to the products they know and trust. Subscriptions can act as a solution.

“A time of enormous uncertainty may be leading people to value the stability and predictability of finding something they love and knowing they can count on its arrival on a regular basis,” said Stephanie Lemmerman, CFO of Recharge, a company that provides ecommerce subscription solutions.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth”

Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
Member Exclusive, Payments

How the global microchip shortage is affecting the payments industry

  • While chip-based payment cards face the biggest threat, experts say the only aspect of payments immune to the shortage is physical currency.
  • As banks look to address the problem, one of the solutions being discussed is extending payment cards' expiration dates.
Subboh Jaffery | June 20, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 8: Klarna and the future of BNPL, PayZen’s ‘Care Now, Pay Later’, and Mastercard’s ‘Smile to Pay’ system

  • This week, we discuss whether BNPL offers a sustainable business model for providers, and whether it’s even viable as a standalone business.
  • We also talk about PayZen’s ‘Care Now, Pay Later’ offering, as well as Mastercard’s ‘Smile to Pay’ system, and what it tells us about the future of privacy and security in payments.
Ismail Umar | June 17, 2022
Payments, Sponsored

International remittances: A money movement lifeline ripe for digitization

  • Digital transformation is simplifying how people move money around the world, yet barriers to international P2P transfers remain.
  • In honor of International Day of Family Remittances, Visa shares four tips for how policymakers can better streamline digital remittances.
Visa | June 16, 2022
Member Exclusive, Payments

Payments Briefing: PayZen wants to combat rising medical debt with ‘Care Now, Pay Later’ solution

  • This week, we explore how PayZen uses a variant of BNPL to tackle healthcare affordability in the US.
  • We also hear from Stax CEO Suneera Madhani on the gender gap in fintech.
Ismail Umar | May 26, 2022
More Articles