A couple of things: One is ensuring a mix of payment mechanisms catering to customer preferences. You have to ensure that the mix of payment mechanisms makes sense and is also taking into consideration the reliability of these payment systems.
The best companies are ensuring a strong component of their subscription payments is essentially done using bank debits. A subscription billing process that has a high degree of bank debit payments is going to essentially reduce payment failures and involuntary churn. Achieving that equilibrium between catering to preference and reliability is crucial.
What we typically see in many of our top merchants is that they use us as the default payment mechanism in many, many markets worldwide such as Europe, Australia, New Zealand, Canada and other countries where customer preference is very high for bank debit. Where the preference for bank debit is very high, the conversion is very high, and they see a massive reduction in payment failure rates.
The second thing to focus on is recovery logic. Even if we maximize the reliability of payment mechanisms, there are going to be some failures and therefore, it’s important to use a sophisticated failure recovery logic and introduce software to help businesses recover payments after they have failed.
So in brief, making sure that the mix is right and making sure that the trade-offs between preference and reliability is right is number one. And the second one is having sophisticated failure recoverability mechanisms.