%20(23)-1.png)
How subscription models are evolving and what it takes to sustain growth
The subscription economy has reached a critical inflection point. While recurring revenue models remain resilient and businesses continue to express confidence in future growth, customer behaviour is becoming more complex. Consumers are spending more on subscriptions than a year ago, yet they are also monitoring costs more closely, cancelling more frequently and demanding greater flexibility. As subscription markets mature, growth is shifting beyond early adopters to more price-sensitive audiences — increasing churn and raising the stakes for retention, loyalty and long-term value creation.
Developed in partnership with Ethoca, a Mastercard company, and drawing on research with more than 10,000 consumers across five markets and over 100 US subscription business leaders, this report explores how organisations can adapt. From making pause functionality the default, to simplifying cancellation journeys, to partnering with banking apps and ecosystem platforms, we examine the strategic shifts redefining subscription relationships. The findings offer practical guidance for subscription businesses and financial institutions looking to reduce churn, deepen engagement and unlock the next phase of sustainable recurring revenue growth.
The subscription economy has reached a critical inflection point. While recurring revenue models remain resilient and businesses continue to express confidence in future growth, customer behaviour is becoming more complex. Consumers are spending more on subscriptions than a year ago, yet they are also monitoring costs more closely, cancelling more frequently and demanding greater flexibility. As subscription markets mature, growth is shifting beyond early adopters to more price-sensitive audiences — increasing churn and raising the stakes for retention, loyalty and long-term value creation.
Developed in partnership with Ethoca, a Mastercard company, and drawing on research with more than 10,000 consumers across five markets and over 100 US subscription business leaders, this report explores how organisations can adapt. From making pause functionality the default, to simplifying cancellation journeys, to partnering with banking apps and ecosystem platforms, we examine the strategic shifts redefining subscription relationships. The findings offer practical guidance for subscription businesses and financial institutions looking to reduce churn, deepen engagement and unlock the next phase of sustainable recurring revenue growth.
What’s inside the report
- The new reality of subscription growth: why confidence remains high even as churn rises, price sensitivity intensifies and markets move beyond early adopters.
- The changing psychology of subscribers: from frequent cancelling and resubscribing to managing payments via banking apps — and what this means for loyalty.
- Retention redefined: why pause, flexibility and frictionless cancellation are emerging as the most powerful levers for long-term value.
- The next acquisition frontier: how app stores, telcos, marketplaces and banking apps are becoming high-intent storefronts for subscription growth.
- Global insights and practical action: what five markets reveal about maturity and behaviour — and the strategic moves businesses and banks must make next.
Who should read this report
- Subscription business leaders looking to reduce churn and strengthen lifetime value
- Product, growth and marketing teams seeking data-driven retention strategies
- Banks and fintechs exploring subscription management as a competitive differentiator
- Business leaders navigating digital transformation and recurring revenue models
%20(20).png?width=768&name=Hero%20Image%20(website%20banner)%20(20).png)
