APAC firms eye Unified Payments & Billing Systems to power global expansion

By Gloria Methri

The subscription economy is on a robust growth trajectory, poised to expand beyond its current valuation of $1.5 trillion. As businesses worldwide scramble to capture this burgeoning market, Stripe’s latest Billing Report sheds light on the critical challenges and opportunities that lie ahead.

According to the report, nearly half (48%) of the surveyed businesses are planning to invest in global expansion within the next 12 months. However, this ambition is tempered by a significant concern: 69% of business leaders doubt that their current billing systems can effectively support such international growth. This hesitation underscores the urgent need for scalable and flexible billing solutions capable of meeting the complex demands of global commerce.

The Stripe report highlights a pressing issue faced by subscription businesses—an inflexible billing infrastructure. A staggering 73% of companies plan to experiment with more flexible subscription plans, such as usage-based billing, to better align with customer preferences and enhance user experience.

Yet, existing billing systems often lack the agility required to implement these creative pricing strategies, leaving many companies at a crossroads. In Singapore (SG) alone, 80% of respondents intend to offer more usage-based billing plans in the next year, outpacing the global average of 73%.

 Unified Payment System: Key to Combatting Involuntary Churn

Another critical finding from the report is the pervasive problem of involuntary churn, where subscriptions end due to factors like failed payments from expired credit cards. Despite 40% of businesses experiencing an increase in involuntary churn over the past year, a surprising 43% cannot quantify the revenue loss from these failures.

Even more concerning, 79% have not implemented measures to mitigate churn, such as retry policies. In response, many Singaporean companies are taking proactive steps, with 70% considering adopting a unified payment system to combat churn—significantly higher than the global average of 53%.

As the subscription economy continues to expand, particularly in the Asia-Pacific (APAC) region, companies are increasingly focused on improving their billing processes to support global scalability. The report indicates that 70% of APAC respondents plan to launch a new pricing model in the next year, surpassing the global average of 69%. Additionally, 48% of APAC businesses are set to invest in global expansion within the same period.

The Billing Report underscores the importance of modern, flexible billing systems as businesses navigate the complexities of global expansion. With the subscription economy set to grow even further, the ability to adapt to changing consumption habits and improve customer experience will be crucial for companies looking to stay competitive in this fast-evolving landscape.