Recurring billing is a convenient, attractive, and easy way to encourage larger carts and better conversion rates by allowing your customers flexible ways to pay for goods and services. Customers can take advantage of recurring billing by subscription (paying for goods and services on a repeated schedule) and financing (buying now and paying later).
Recurring billing is especially useful for businesses that sell big-ticket items, subscriptions, and services or average carts over $100 by making these purchases more accessible to shoppers who may not feel comfortable spending a large sum of money at one time.
On BigCommerce, an app or specific payment gateway such as Afterpay, Klarna, and PayPal is required to add this functionality. Not only do these apps and gateways add recurring billing as an option for your business, but experienced online shoppers recognize and trust these payment methods — which can lead to better conversion rates for your store. To learn more, see Why You Should Use a Subscription Business Model (entrepreneur.com) and Offering Layaways (ftc.gov).
Types of Recurring Billing
Any time that a customer is charged at regular intervals is considered recurring billing. There are a couple models that are common for recurring billing:
Subscription — a product or service that is purchased on a repeated schedule. For example, a shopper may set up a schedule to purchase pet food every two weeks, or sign up for a monthly gift box of pet treats.
Layaway or "Buy Now, Pay Later" — a shopper pays for one item or order over a period of time. For example, a shopper may pay $25 for a $100 item, and continues to pay the $75 difference over two months.
Recurring Billing with BigCommerce
To offer recurring billing in BigCommerce, there are apps in our App Marketplace that allow you to add this functionality to your store. For example:
- Bold Subscriptions — subscriptions
- Subscrimia — subscriptions
- Bread Finance — flexible financing, flexible payment plans, and pre-qualifications
- Paywhirl — subscriptions, payment plans, layaway plans, pre-orders and more
- Rebillia — subscriptions, recurring billing and credit card saving
- MiniBC — automated recurring billing & credit card vaulting
- Partial.ly — flexible payment plans in 25 countries
- Credit Key (B2B US businesses only) — flexible payment solutions
- Ordergroove — best-in-class subscription, membership, box, and reordering programs
Some apps may require your store to use legacy checkout, which may not be available in your store's control panel. We recommend confirming with the app developer before installing.
Some payment gateways offered on BigCommerce have features that allow merchants to offer a buy now, pay later model for products. In both offers, the payment gateway assumes responsibility for collecting the funds, but the merchant receives the full payment when the order comes in.
- Klarna Payments — offer various payment options to customers, allowing them to pay over time
- PayPal Credit — allows shoppers to buy now and pay later with their PayPal account
- Afterpay — breaks transactions into four equal installments due every two weeks
- Affirm — allows customers to pay over time
- Zip — allows Australian customers to buy now and pay later with interest-free payments for the first three months