Recurring Payments: What Businesses in Malaysia Need to Know

The recurring payment model is becoming increasingly popular among businesses in Malaysia due to the convenience it offers for both customers and businesses. Specifically, recurring payments are known for their ability to help businesses reduce churn rates and plan their budgets through projected financials.

If you run an online business, it's important to understand the concept of recurring payments, how it operates, and whether it is the right payment model for you. In this article, we'll dive into online recurring payments, explore their benefits, and discover how to set up recurring payments.

What are Recurring Payments?

Recurring payment is a system in which funds are automatically withdrawn from a customer's account at regular intervals to cover subscription fees for products or services. These payments are pre-scheduled, providing customers with clear awareness of the dates on which deductions will occur.

For businesses to accept recurring payments, you need a merchant account partnered with a payment gateway with the capabilities to support this payment method.

If you’re new to payment gateways, check out Payment Gateway 101 for more information.

Which Businesses Benefit from Recurring Payments?

Recurring payments are most suitable for businesses that offer products or services through a subscription model. For example:

• Membership-based businesses: Such as gyms, fitness centers, and social clubs.
• Subscription services: Including streaming platforms, music services, and digital magazine subscriptions.
• Educational institutions: Such as schools, training programs, and online courses.
• Insurance companies: Particularly for healthcare plans and certain insurance services.

Why Should Businesses Adopt Recurring Payments?

Efficient and Convenient Customer Payments

Businesses can establish payment terms with customers and schedule payments in advance through recurring payments. Subsequent transactions are then automatically debited from the customer's bank, streamlining the payment process. This not only saves time for customers who would otherwise manually make monthly payments but also ensures a reliable and convenient payment experience.

Simplified Administrative Processes

Setting up recurring payments greatly simplifies administrative processes for businesses. Unlike relying on continuous customer reminders, the system requires customers to input their payment details just once. Subsequent charges are then automated, ensuring uninterrupted service and minimizing the need for manual monthly payments. This automation enhances operational efficiency and streamlines the payment process from the business's perspective.

Churn Rate Reduction

Recent studies indicate that embracing automatic recurring payments can, on average, reduce a 5% churn rate. Churn typically occurs when customers are dissatisfied or find better alternatives. By offering recurring payments, businesses enhance customer experience, guaranteeing consistent payments, minimizing cancellations due to missed payments, and decreasing the likelihood of customers switching to competitors.

Setting up recurring payments for your business: What you need to know

To implement recurring payments, businesses need to collaborate with a payment gateway supporting this specific payment method.

There are two primary approaches to setting up recurring payments: developers can configure it through the application programming interface (API), or commercial teams can directly set it up using the payment gateway dashboard.

Opn Payments simplifies the process for businesses, offering comprehensive and user-friendly documentation that guides both developers and non-tech teams through the setup.

Refer to Opn Payment’s guidelines for detailed instructions on setting up recurring payments via API or setting up directly on your dashboard.

How to start accepting recurring payments?

The 4 steps of accepting recurring payments:

1. Create an Account with Opn Payments: Create an account with Opn Payments payment gateway. Opn offers businesses a recurring payment feature for you to integrate through the API or directly on the dashboard.
2. Activate the Live Account: Provide the required documents for identity and business verification through Opn’s dashboard.
3. Test and Launch: After the Opn team reviews your documents, businesses should run tests to ensure smooth integration.
4. Start Accepting Payments: Once thoroughly tested, you are ready to start accepting recurring payments from customers.

Trusted by over 20,000 businesses worldwide, Opn Payments offers a modern payment gateway that ensures real-time transaction tracking and a secure, streamlined checkout process. With Opn Payments, businesses can effortlessly set up recurring payments and enhance their overall checkout experience.

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