Glossary

Subscription Billing

Subscription billing is a periodic, automated charge made on an ongoing basis for a product or service. Also called recurring billing, subscription billing is the preferred billing method for SaaS software and services.

For providers, subscription billing can provide a range of benefits. These include delivering a more predictable revenue stream while reducing the time and cost associated with manual payment processing. For customers, subscription billing offers predictable costs while removing the burden of scheduling payments or reordering manually.

According to Gartner, more than 80 percent of software vendors have already changed their business model from traditional license and maintenance to subscription billing.

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With the world of software sales constantly changing, the build versus buy question is becoming more complex. Read our blog post as we take a deeper dive into new areas that businesses need to consider in their build versus buy debate for recurring billing.

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AppDirect's Subscription Billing Service can help increase sales directly with self-service commerce. Learn about the capabilities and feature highlights of AppDirect's billing solution.

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