Recurring Payments Market

Recurring Payments Market Analysis by Services and Payment Platforms for B2B and B2C Use from 2023 to 2033

Analysis of Recurring Payments Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Recurring Payments Market Outlook (2023 to 2033)

Newly-released Recurring Payments Market analysis report by Fact.MR reveals that the global value of recurring payments in 2022 was held at US$ 130.2 Billion. With 6.9% projected growth during 2023 – 2033, the market is expected to reach a valuation of US$ 268.7 Billion by the end of the forecast period.

Revenue through subscription based businesses is expected to be the significant revenue-generating component of recurring payments, projected to grow at a CAGR of over 5.4% from 2023 to 2033.

Attributes Details

Recurring Payments Market Size (2022)

US$ 130.2 Billion

Recurring Payments Market Size (2033)

US$ 268.7 Billion

Recurring Payments Market CAGR (2023-2033)


U.S. Recurring Payments Market CAGR (2023 – 2033)


Key Companies Covered (by Services)

  • Netflix
  • Spotify
  • The New York Times
  • Coursera
  • Atlassian
  • Apple Services(iCloud)
  • American Express
  • Ipsy
  • Life Time
  • AT&T

Key Companies Covered (by Payment Platforms)

  • Recurly
  • Stripe
  • Paypal
  • Adyen
  • Block
  • Zoho
  • Paddle
  • Chargebee
  • ReCharge
  • Zuora

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Revenue of Recurring Payments Market from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033

As per the research of the Recurring Payments Market by Fact.MR - a market research and competitive intelligence provider, historically, from 2018 to 2022, the market value increased at around 9% CAGR. With an absolute dollar opportunity of US$ 131.4 Billion, the market is projected to reach a valuation of US$ 268.7 Billion by 2033.

What are the Key Drivers Influencing the Market Expansion?

Recurring payments are regular, automated transactions that occur on a predetermined schedule, typically in exchange for goods or services. This market has experienced significant growth in recent years, driven by the rise of subscription-based business models and the increasing preference for convenient and seamless payment methods.

The proliferation of subscription-based business models across various industries, including software, media, e-commerce, and more, has fueled the demand for recurring payments.

Companies offering subscription services rely on recurring payments to secure predictable revenue streams and maintain ongoing customer relationships. This is due to steady and predictable revenue growth provided by recurring payments. For instance, according to Zuora Subscription Index 2023, subscription businesses such as streaming services like Netflix and Spotify, software-as-a-service (SaaS) providers like Adobe Creative Cloud, and subscription boxes for various products have grown with a CAGR of 17% between 2012 to 2022.

Having support for multiple payment gateways allows businesses to offer flexibility to their customers by accepting payments from different sources, while also streamlining their payment processing operations. Many recurring payment platforms have multiple integrations to provide a unified payment gateway. For instance, recurring payment platforms such as Chargebee and Zuora have 23 and 30 different payment gateways to ensure seamless transactions. This is increasing the adoption of payment platforms influencing the market growth.

Small businesses as well as enterprises, are spending on SaaS and it has significantly grown since 2020. Small companies with less than 100 employees saw a growth of 377% in spending on SaaS solutions in 2022 compared to 2020. Enterprises have also increased their spending on SaaS services by 33% in 2022. This adoption of SaaS has led to a significant need for payment management systems for SaaS billing to help SaaS businesses manage recurring payments.

Open banking, which refers to the practice of sharing financial data with third-party providers through APIs (Application Programming Interfaces), has gained momentum in recent years as a way to promote competition, innovation, and customer empowerment in the financial services industry. In response to this trend, many banks around the world have made regulatory changes to promote open banking, creating significant opportunities for the financial sector. For instance, in 2018, the UK began focusing on open banking and the UK government believes that the penetration of open banking will increase to gain 60% users by September 2023.

For businesses that rely on recurring payments, open banking can provide real-time transaction data, simplifying the reconciliation process and reducing administrative overhead. This can lead to more accurate financial reporting, cash flow management, and improved operational efficiency of recurring payments.

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Which Region is Projected to Offer the Significant Growth in the Market?

North America is a prominent shareholder of the market with a size of US$ 50.5 Billion in 2022. It is projected that North America will have a market worth US$ 82.2 Billion by 2033.

North America has over 19,000 SaaS companies in 2023 which has a significant share in the global market. Software as a service, or SaaS, uses a conventional subscription model in which consumers typically pay monthly for access to a particular software package that is centrally hosted by a vendor or cloud provider. These payments are made via systems that accept recurring payments. These significant trends in the region are likely to boost the revenues of SaaS companies through recurring payments.

Country-Wise Analysis

United States Recurring Payments Market Analysis :

The market in United States is expected to grow to be worth US$ 74.8 Billion by 2033, with an absolute dollar growth of US$ 25.2 Billion from 2023 to 2033. The market in the United States has grown at a CAGR of 6.8% from 2018 to 2022 and is expected to grow at a CAGR of 4.2% from the year 2023 to 2033.

Subscription e-commerce, also known as subscription boxes or subscription-based business models, has been experiencing significant growth in the US in recent years. E-commerce sales through subscriptions in the US jumped from US$ 23 Bn in 2020 to US$ 28 Bn in 2021.

This significant growth is likely to gain momentum in the US with expected revenues of US$ 38 Bn in 2023. The sales have nearly doubled from 2019 which creates a significant opportunity for recurring payments as subscription businesses rely on recurring payments for customer retention and reduce churn rate.

China Recurring Payments Market Analysis :

The market in China is expected to grow to be worth US$ 34.5 Billion with an absolute dollar growth of US$ 16.2 Billion till 2033. The market in China has grown at a CAGR of 9.5% from 2018 to 2022 and is expected to grow at a CAGR of 6.1% from the year 2023 to 2033.

Recurring payments in China have gained significant traction in recent years, driven by the country's rapidly growing digital economy and evolving consumer behavior. China's digital payment landscape is dynamic and rapidly evolving with a market value of US$ 3.6 Trillion in 2022. This indicates the significant adoption of digitalized payments by the country creating significant opportunities for recurring payments.

Germany Recurring Payments Market Analysis :

The market in Germany is expected to grow to be worth US$ 10.5 Billion with an absolute dollar growth of US$ 5.3 Billion till 2033. The market in the country has grown at a CAGR of 10.2% from 2018 to 2022 and is expected to grow at a CAGR of 6.7% from the year 2023 to 2033.

The SEPA Direct Debit (Single Euro Payments Area) is the primary method for recurring payments in Germany. It allows businesses to collect payments directly from customers' bank accounts.

SEPA Direct Debit mandates are used to authorize recurring payments, and both one-time and recurring payments can be set up. Also, standing orders, known as Daueraufträge in Germany where customers can instruct their bank to make regular payments of a fixed amount to a specific recipient at specified intervals. The availability of such payment methods in the country has created a significant growth opportunity for recurring payments.

United Kingdom Recurring Payments Market Analysis :

The market in the United Kingdom is expected to grow to be worth US$ 16.5 Billion with an absolute dollar growth of US$ 5.9 Billion. The market in the country has grown at a CAGR of 7.4% from 2018 to 2022 and is expected to grow at a CAGR of 4.2% from 2023 to 2033.

The UK has been at the forefront of open banking initiatives and FinTech innovations. The United Kingdom began implementing open banking regulations in 2018 with the Payments Services Directive 2 (PSD2). Four years after its implementation the country has over 4.5 million active users and has seen a 60% rise in new clients in 2021, with around 27 million processed open banking payments. These developments have facilitated the integration of recurring payment services into various digital platforms and mobile applications, providing users with more options and convenience in managing their recurring payments.

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Category-Wise Insights

Which Component of Recurring Payments Market Is Projected to Witness the Fastest Growth?

The services component of recurring payments is projected to witness the fastest growth as it has grown at a CAGR of 5.2% from 2023 to 2033.

Recurring services own a larger share of the market compared to payment platforms. The payment platforms provided by fintech companies only assist recurring service businesses to manage their recurring payments from the customers. These payment platforms charge for their services from the businesses per transaction through their payment gateways. The ultimate transaction value of recurring payment thus is paid to recurring services ensuring its larger market share.

Which Payment Type is Projected to Witness the Fastest Growth?

Recurring payments made through fixed payments are projected to witness the fastest growth as it is expected to grow at a CAGR of 4.9% from 2023 to 2033.

Fixed recurring payments refer to regular, predetermined payments that occur on a consistent schedule. These payments are typically for a fixed amount and are often associated with ongoing services, subscriptions, or contractual agreements. Fixed recurring payments provide predictability and assist in budgeting. Since the payment amount remains constant, it allows individuals or businesses to plan their finances accordingly, knowing the exact amount that needs to be allocated for the recurring payment.

Recurring payments are often used for fixed payment expenses such as subscription services to manage finances. This is likely to gain fixed payment growth opportunities during the forecast period.

Competitive Analysis

Key players in the market are Netflix, Spotify, The New York Times, Coursera, Atlassian, Apple Services (iCloud), American Express, Ipsy, Life Time, Recurly, Stripe, Paypal, Adyen, Block, Zoho, Paddle, Chargebee, ReCharge and Zuora.

The recurring services companies are deploying payment platforms to manage recurring payments from customers as these platforms provide unified payment gateways and provide many benefits such as multiple currency supports and revenue recognition as well as invoicing.

Some of the recent developments in the Recurring Payments Market are :

  • In March 2022, Spotify announced a partnership with Google. The multi-year agreement between the two will offer Spotify customers a first-of-its-kind payment option to subscribe to Spotify. The customers who download Spotify from the Play store will have Spotify payments as well as a Google Play Billing option to sign up for subscription payments.
  • In February 2023, Recurly announced its partnership with subscription business model consultancy platform Recuro to combine their technologies to meet the needs of high-growth subscription companies.
  • In January 2022, Music streaming platform Spotify chose Stripe to leverage its recurring payments management solution to manage recurring revenue and accelerate its podcast subscription platform.
  • In December 2022, Adyen partnered with the gaming platform Aliyoop to help bring rapid payments to gamers around the globe. This partnership will help Aliyoop offer smooth global payments for small as well as large volumes of transactions.
  • In February 2022, Chargebee acquired a collection management platform numberz. Chargebee with this acquisition launched Chargebee Receivables to automate receivable payments for their clients.
  • In February 2022, The New York Times announced the acquisition of the word game Wordle. This acquisition is the strategic plan of the company to grow its digital subscriptions to 10 million by 2025.
  • In August 2020, American Express expanded its "Pay It Plan It" feature, which allows cardholders to pay off their purchases in installments, to American Express Green Card, American Express Gold Card, and Platinum Card.

Segmentation of the Recurring Payments Market

  • By Component :

    • Services
    • Payment Platforms
  • By Payment Type :

    • Fixed
    • Variable
  • By End Use :

    • B2B
      • Subscription-based Businesses
        • Publication Services
        • Streaming Services
        • Cloud Services
      • Financial Services
      • E-learning
      • Utilities
      • Telecom
      • Subscription E-commerce
      • Club Memberships
    • B2C (SaaS Solutions)
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia and ASEAN
    • Middle East and Africa
    • Oceania

- FAQs -

What value is the market estimated to reach in 2023?

The global market size is estimated to be valued at US$ 137.3 Billion in 2023.

What valuation is the market estimated to reach in 2033?

The market is expected to reach a valuation of US$ 268.7 Billion in 2033.

What value CAGR did the market exhibit over the last 4 years?

The market registered a CAGR of 9% over the last 4 years.

What is the projected CAGR for the market from 2023 to 2033?

The market is projected to witness a CAGR of 6.9% from 2023 to 2033.

Which is the top component of the market that is expected to witness significant demand and what is its projected CAGR till 2033?

The services segment of recurring payments is projected to witness significant demand with an expected CAGR of 5.2% from 2023 to 2033.

What payment type of Recurring Payments is expected to witness the significant demand till 2033 and what is its projected CAGR?

Recurring payments revenue through fixed payments is projected to grow at a CAGR of 4.9%.

What is the expected United States market size till the projected year 2033?

The United States is projected to witness market size of US$ 74.8 Billion by 2033 and is expected to grow at a 4.2% CAGR from 2023 to 2033.

Which are the key companies in Recurring Payments Market?

Key players in the market by Payment Platforms are Recurly, Stripe, Paypal, Adyen, Block, Zoho, Paddle, Chargebee, ReCharge and Zuora.

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