Barclaycard Payments reports subscription economy grew to £395 mn
By Joy Dumasia
Barclaycard Payments, which processes credit and debit card transactions, found that increase coincides with a 16 per cent rise in the number of shoppers signed up to subscriptions and a 12 per cent upsurge in annual expenditure per person for those signed up to the services.
Despite lockdown restrictions easing across much of the UK, Barclaycard Payments reveals the nation’s demand for subscriptions continues to grow, reaching a value of £395 million – up 23 per cent in the past year.
This rise coincides with a spike in new subscription offerings, with 83 per cent of subscription-selling retailers launching an average of three new subscription products or services since the start of this year alone. It seems this trend is set to continue, with retailers projecting a further 30 per cent growth for the subscription sector over the next 12 months.
Research from Barclaycard Payments also identified the factors most important for consumers when receiving subscription services are: Good value remains the factor customers most want to see (54 per cent), with 45 per cent even regularly comparing their services to ensure they’re getting a good deal. Flexible contracts (36 per cent) and straightforward opt-out processes (33 per cent) are also crucial. Additionally, 41 per cent of Brits who don’t have any subscriptions suggested that being locked into a contract was their central deterrence, preferring a no-strings-attached approach.
Marc Pettican, President of Barclaycard Payments, said: “Our second annual review of the subscription economy shows a sizeable growth of spending on these services over the past year, showcasing how important this revenue stream has become to retailers. While lockdown certainly provided a catalyst for their growth, our data shows the popularity of digital and direct-to-door sign-up services is here to stay.”
IBS Intelligence reported that Barclaycard Payments had announced the appointment of Harshna Cayley as its new MD, Head of Product Gateway. Cayley will be reporting directly to Rob Cameron, CEO, as a member of the Payments Executive Committee, and will be responsible for the strategy, vision and commercial management of Barclaycard Payments’ suite of Gateway products.