Subscription Billing

Subscription Billing

What is Subscription Billing?

Subscription Billing is a payment method where customers are charged at regular intervals—monthly, quarterly, or annually—for ongoing access to products or services. 

This model is common in;

  • SaaS platforms, 

  • streaming services, and 

  • Membership-based businesses. 

Subscription billing ensures consistent revenue for companies and provides convenience for customers, who benefit from uninterrupted service without needing to renew manually.

Subscription Billing vs. Recurring 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:

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

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

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

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