Brazilian payments FinTech PagBrasil has released an updated version of its subscription platform, PagStream.
The subscription management solution gives local and international retailers that sell goods and services in Brazil the means “to have more predictable revenue by building customer loyalty and enhancing the growth of their businesses,” PagBrasil said in a Monday (June 17) news release.
According to the release, PagStream lets retailers create “flexible and personalized payment plans,” as well as recurring billing with alternative payment methods. It also features a promotion engine to let retailers create automated and personalized campaigns, and a subscriber portal, where merchants can make changes to their subscription plans.
Ralf Germer, CEO and co-founder of PagBrasil, said that while the subscription business has gained traction in Brazil, “…it is still a small portion of the market segment when compared to North American countries.”
The release note that the national market revenues for subscription services in the U.S. is more than nine times that of Brazil, a discrepancy driven by “the lack of sophisticated solutions adapted for the Brazilian market.”
While America and Europe have dozens of subscription solutions, Brazil’s models often require a great deal of work to manage.
“If something is not automated, there is a risk of human error, and the larger the business, the more scalable the loss will be,” Germer added.
Research by PYMNTS Intelligence found that consumers want flexibility when dealing with subscription services.
The PYMNTS Intelligence report “The Impact of Subscription Models on Consumer Choice,” created in collaboration with sticky.io, found that discount refill subscribers — people who commit to receiving products at a fixed cadence in exchange for a price reduction — are 12% likelier than the average retail subscriber to cite the ability to change the subscription frequency without the need to unsubscribe first as the key reason they subscribe.
Discount refill subscriptions can be vital to brands’ ability to connect with their highest-value customers.
In an interview with PYMNTS, Affton Coffelt, founder of Broken Top Candle Company, said that the company’s direct-to-consumer (D2C) subscription goes a long way towards helping the firm retain its biggest spenders.
“We’ve seen a lot of engagement with [highly loyal] consumers in our subscription side of the business,” Coffelt said. “Everything in our product line is consumable, which makes it easy on a reorder cadence.”
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