How Blockchain Transforms Trust in Recurring Payments – with Examples
Subscriptions are part of our daily lives. Think about Netflix, gym memberships, or software licenses. These regular charges, usually monthly charges, can sometimes be convenient.
But they can also cause some alarms for your customers. Some of their concerns may be:
- Am I being billed correctly?
- Can I easily cancel if needed?
- How do I keep track of all these subscriptions?
These worries can make potential customers hesitate. But blockchain is changing all of that.
Blockchain puts unprecedented transparency and control in the hands of consumers. Let’s explore how.
Blockchain makes recurring payments crystal clear
Traditional recurring payment systems often feel like a black box. You authorize a charge, but then what?
Traditional subscriptions have limited visibility into the process. This lack of transparency can lead to:
- Billing disputes.
- Difficulty tracking spending.
- Cancellation headaches.
These issues erode customer trust and discourage people from signing up for services.
Enter blockchain. It creates an unalterable, transparent record of every transaction. It enhances customer confidence by:
1. Verifying transaction history
Every payment lives on a public ledger. Customers can easily check payment dates, exact amounts charged, and charge frequency
This transparency goes far beyond simple spending tracking. For example, if you're considering a long-term contract with a potential partner, you could verify how long they've been in business, their consistent pricing history, or the number of active memberships over time.
This level of insight helps you confirm the company's stability and fairness in pricing - information that's typically hidden with traditional payment systems.
2. Smart contracts for clear terms
Smart contracts are self-executing agreements with terms written directly in code. For subscriptions, this means:
- Unchangeable subscription terms
- Automatic payments as agreed
- No surprises or hidden fees
For example, a customer agreeing to a $9.99 monthly streaming service can trust that's exactly what they'll be charged – no unexpected price hikes or extra fees.
3. Cancel with a click
One of the biggest consumer pain points in subscriptions is the cancellation process. Blockchain flips this on its head.
For example, if you decide to cancel your $15/month news subscription, you simply revoke permission from your blockchain wallet. No need to navigate complex cancellation procedures or speak with customer service.
This level of control takes the anxiety out of trying new services.
Why businesses should care
It's not just customers who benefit from the level of transparency that blockchain provides. Businesses that adopt blockchain-based recurring payments can:
- Reduce disputes and chargebacks
- Build stronger customer relationships
- Potentially increase subscription sign-ups
By giving customers more visibility and control, businesses build trust and loyalty.
Real-world applications in action
While still emerging, we’re seeing blockchain subscriptions make waves in these different areas:
- Loyalty Programs: Ditch easily lost punch cards. Blockchain tracks reward points with perfect accuracy.
- DeFi Platforms: View your entire lending and borrowing history – far more transparent than traditional banks.
- E-commerce Subscriptions: Blockchain proves every recurring order, slashing disputes between customers and businesses.
Get more subscriptions with blockchain payments
By adopting blockchain technology, you can make your subscription service stand out and potentially increase your customer base and revenue.
Curious how blockchain can transform your subscription model? Let's talk! Book a demo to see it in action.