Mastercard to set a new standard for subscription trials
We are moving past the consumer oriented e-conomy where subscription services was a “thing” to do. Today — we subscribe to services 24x7, 365 and we love it.
Many providers of subscription service even allow us to try-before-buy. This behaviour — the trial experience — has many forms and customer journeys, which is why it is important to understand how important the latest news announcement from Mastercard is. To you as a consumer. And to you as a merchant providing subscriptions.
By January 16th 2019 — Mastercard took a stand to protect the user. Read their announce here. https://newsroom.mastercard.com/2019/01/16/free-trials-without-the-hassle/
To you as a consumer
Rest assure — as a consumer, you have just received a stronger and more safe reason to continue using subscription services. Even more so, I predict the announcement of Mastercard will only fuel the growing subscription industry.
With the announcement, Mastercard require that merchants — the company providing your subscription service — let’s say Netflix — require a formal approval of subscription activation. Typically some merchants, have required that though you sign up for a trial, you must provide a method of payment and that this trial automatically will activate if you do not cancel the trial.
Mastercard, and probably VISA following soon, will require a direct consent for converting the trial to a subscription. This is keeping you safe as a consumer.
To you as a merchant
Our recommendation is:
· Provide cardless trials if you provide a digital non-physical subscription service. Reduce the time available for that trial if there are high costs associated to the product.
· If you provide a physical product often with logistical costs associated, consider how the trial period is handled by selling a smaller portion of the product, or simply provide a first billing cycle of 100% discount.
How Upodi will deal with the message
Upodi believe in the message and announcement of Mastercard. We believe in the protection of the consumer and will adopt the implementation using our subscription software. Our forthcoming trial management enhancement to the platform will be postponed, adopting the triggers and consent required from Mastercard. We do not believe that Mastercard will be alone in this — VISA, Amercian Express and others will soon follow.
You can read more about Upodi here — www.upodi.com and be sure to read the update from Mastercard here — https://newsroom.mastercard.com/2019/01/16/free-trials-without-the-hassle/.