Subscription services continue to prevail over other business models in the UK. However, one in three subscription holders (equivalent to around 15.9 million people) have noticed a subscription payment coming out of their bank account that they could not recognise or had forgotten, according to new research by online prepaid payment firm Recharge.
Through a survey of 2,000 UK adults, conducted by Opinium Research, Recharge found that Brits earning over £40,000 per year (61 per cent) are more likely to notice an unrecognised subscription than those earning between £20,000 to £40,000 per annum (33 per cent).
In addition, male subscription holders are twice as likely as female subscribers to identify multiple unrecognised subscription payments. The survey also found that Londoners are 120 per cent more likely to spot an unfamiliar subscription charge compared to the rest of the UK (30 per cent). Meanwhile, Brits in the West Midlands are least likely to notice an unrecognised subscription (21 per cent).
Günther Vogelpoel, CEO of Recharge, said: “Unrecognised subscriptions are having a significant impact on Brits, impacting their ability to purchase essential or luxury items, or contribute to savings and investments. Our research highlights the importance of budgeting tools to protect consumers from forgotten or unrecognised subscriptions and help control their spending.
“Prepaid payments products are one of the ways to do this, bringing a hard cap to spending with specific merchants or cards. Recharge is all about putting the consumer in charge and providing them with the options to spend their way whilst continuing to meet their evolving needs.”
Male subscription holders (16 per cent) also emerged as twice as likely as female subscription holders (eight per cent) to notice more than one unrecognised subscription.
Forgotten subscriptions
With subscription businesses forecasted to lose over £102billion in revenue in 2025, a new study reveals that payment issues, such as failed transactions and unexpected charges, can become a major issue for subscription businesses, causing frustration for customers and damaging retention and referrals.
Recent research by payment processing platform Solidgate also found that one in four had upsetting unexpected charges with their subscriptions and 80 per cent wouldn’t recommend a subscription service to a friend if they had trouble cancelling it.
“Our research reveals the delicate balance between challenges and opportunities in the subscription economy,” said Yuri Alekseev, co-founder and CEO of Solidgate. “While subscriptions are a convenient model, even the slightest payment issues can quickly erode customers’ trust and loyalty. What’s more, businesses might not even know they are making these mistakes.
“Businesses looking for a competitive advantage need to fine-tune their approach. That includes offering flexible billing options; being sure they communicate clearly and quickly about payment issues; and putting in place robust security measures.
“This will not only ensure that customers have a seamless billing experience but will also maximise the chances that they refer businesses to their friends and family.”
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