Imagine a streaming platform with 1 million subscribers and monthly plans of US$ 25. Now consider that 3% of those payments fail every month due to simple reasons such as expired cards, insufficient limits, unpaid invoices, or processing errors. What seems like a small detail quickly turns into US$ 750,000 in lost revenue each month.
Involuntary churn is a common challenge for businesses that rely on recurring payments and predictable revenue. This is where recurring payments become essential. They bring automation, security, and reliability, ensuring that each renewal happens seamlessly, without manual effort or failed transactions.
Now, with FacilitaPay, offering this type of payment through credit cards is not only possible but easy to integrate. Keep reading to learn how this functionality works in practice.
Understanding the regional landscape
Digitalization in Latin America continues to accelerate, with 85% of the population already online and an estimated 33 million new consumers expected to connect to the internet for the first time by 2026 (DataReportal, 2024). The credit card remains the leading payment method for online purchases in the region, accounting for 42% of total e-commerce transactions (Payments CMI, 2024) and generating more than US$ 80 billion in online sales in 2024 (eMarketer).
Still, credit cards come with their own challenges:
- Expired cards
- Insufficient limits
- Processing errors
- Authentication failures
These factors are among the main causes of involuntary churn, especially in cross-border operations, where rejection rates tend to be higher. Recurring credit card payments help overcome these barriers by automating the billing process, minimizing failures, and increasing approval rates for legitimate transactions.
How FacilitaPay’s recurring credit card solution works
FacilitaPay offers a fully API-integrated solution that allows businesses to automate recurring charges with complete control and security. End users only need to enter their card details once, and from there, the entire process runs automatically, protected by tokenization and compliant with PCI DSS standards.
Payment frequency can be configured to fit the business model, whether daily, weekly, monthly, quarterly, semiannual, or annual, providing full flexibility for different operations. The solution supports multiple subscription types, including:
- Immediate billing – the payment is processed at the time of subscription.
- Trial period – the first payment occurs after the trial ends.
- Free period – billing begins only after the free period expires.
Transform your operation with recurring payments
The new recurring credit card payment solution from FacilitaPay is now available for companies looking to reduce manual management costs, increase revenue predictability, and deliver a frictionless payment experience.
FacilitaPay combines global infrastructure with local technology, offering features such as 3D Secure, tokenization, Smart Routing, pre-authorization, and secure settlement. Connected to global partners and card networks, we provide your company with access to the infrastructure of major players, while maintaining the agility and flexibility of a fintech.
Talk to our specialists and discover how we can help accelerate your business growth.
