What is Recurring Billing?

Recurring Billing is used by businesses to charge their customers for the product or services they provide on a regular basis, like monthly or annually.

The types of business or companies that use recurring billing methods are;

• SaaS

• Entertainment (like Netflix, Prime etc)

• E-commerce

• Publications

• Online education platforms and so on

Recurring Billing vs. Subscription Billing 

• Subscription Billing charges a fixed fee regularly for access to a service or product.

• Recurring Billing is broader and can include variable charges, such as usage-based billing or pay-as-you-go models.

For example:

Recurring Billing: A cloud service provider billing based on the amount of storage used monthly.

Subscription Billing: A SaaS platform charging $20 per month.

Both models cater to different customer needs but share the goal of simplifying billing processes.