Recurring Billing

Recurring billing is a periodic payment made on an ongoing basis for a product or service. Also known as subscription billing, recurring billing has emerged to be the preferred billing method for cloud-based software and services.

Recurring billing can provide a range of benefits. For providers, it offers a more predictable revenue stream while eliminating the time and cost associated with collecting manual payments. For customers, recurring billing provides continuous service and removes the burden of remembering to make payments or reordering.

Gartner has predicted that by 2020, more than 80 percent of software vendors will change their business model from traditional license and maintenance to recurring billing.