Recurring payments can play a major role in any business, as they will provide a business with the ability to essentially automize specific functions or tasks that need to be completed. This allows business owners as well as employees to put their focus elsewhere, such as on their work, instead of worrying about payments.
Whenever a business begins offering services through a subscription model, and it grows, so will the customer base, and as a result of this, automatic recurring payments will play an even more major role.
Custodial recurring payments, as a result of this, are an essential part of any business model. Today, we will be going over what custodial recurring payments actually are, how they work, and how they can benefit your business specifically, after which we will go over how you can set things up.
Key points:
- Custodial Recurring Payments can help differentiate the sum of your regular payments.
- Any business does not need to get their customer involved in payments, streamlining the entire process.
- Businesses can automatically manage their payment flow through a white-label solution available.
- NOWPayments is a leading crypto payment gateway that enables the Crypto Custodial Recurring payment tool that can help businesses bill their customers regularly based on their subscription tier or consumption.
What is a custodial recurring payment?
If you are curious about what is recurring payment, this is essentially a billing service, one that enables merchants to charge funds from user deposit accounts in a way that is automatic and directly impacted by their activities.
What this essentially means is that the payment flow is automated and becomes easy for customers, where once users become subscribed to a specific service you have on offer, you can automatically charge them. There is a white-label solution available as well.
Through custodial recurring payments, businesses can manage the financial flow between its account, as well as the user deposits automatically. This means that your business can bill your customers individually, which is directly based on the amount of your offering they consume or their overall performance. This is essentially what is a recurring payment, and how a recurrent payment works.
How Recurring Payments Work:
- Businesses can create user accounts.
- Businesses then fund these accounts from payments or through their master account.
- They can then withdraw funds from sub-accounts to their master account.
- Furthermore, they can also transfer funds between the accounts.
How will custodial recurring payments benefit my business?
A recurring payment is essentially just about any payment type which has been set up to process periodically without requiring any additional work or action on the part of the customer or the party that is paying.
You can think of them as payments that are typically tailored towards subscription services, utilities, and memberships, many of which typically use some sort of system.
These are payment plans that let customers split up large purchases, throughout a pre-defined period of time, in the form of a payment that is recurring. These might also be referred to at the time as automatic payments.
If you run a business or are a part of a company that offers subscription-based services, which are essentially products or services that exist online but can be accessed through an account or key that the user has to pay for on a regular basis, then custodial recurring payments can benefit your business tremendously.
Instead of you or an employee at your company having to manually ask the user to submit payments each month and manually keep track of which user has paid and which has not for you to suspend the service for those who have not paid, all of this can be automated through the usage of a specific service that has this as an offering. This is how recurring monthly payment plans work.
Ultimately, recurring payments will be efficient for both the customer, as well as the business, as this eliminates the risk of late or missed payments and establishes a much higher level of trust between the customer and the merchant as a whole.
Accepting recurring payments will save your business a lot of time and even improve customer relationships, alongside increasing the accuracy surrounding the cash flow prediction. So if you were curious about what’s a recurring payment, now you know more surrounding recurring bill payments.
How to accept custodial recurring payments?
NOWPayments will provide you with a billing solution that can enable you to manage the financial flow between your accounts as well as user deposits automatically. This will enable you to bill your customers individually based on the amount of their consumption, performance, or subscription plan.
Here is what you need to do, step-by-step:
- Step 1: Sign Up for a NOWPayments account. To do this, head over to the official account creation page, enter your email address password, and read, then agree to the NOWPayments service agreement, as well as the User Agreement and AML and KYC Policy.
- Step 2: Add your crypto wallet address, after which you can generate an API Key.
- Step 3: Integrate it with a Billing API. To do this, you will head to head over to the official documentation and find all of the Billing API codes that you will need.
You can create a Recurring Payments plan, where every plan has a unique ID required for generating separate payments. Here is an example request.
| curl –location –request POST ‘https://api.nowpayments.io/v1/subscriptions/plans’ \ –header ‘x-api-key: <your_api_key>’ \ –data-raw ‘{ “title”: “second sub plan”, “interval_day”: 1, “amount”: 0.5, “currency” : “usd” }’ |
- You can then add more to it. Here is an example code on how you can send payment links to your customers through email. Note that a day before the paid period ends, the customer will receive a new email with a new payment link.
| curl –location –request POST ‘https://api.nowpayments.io/v1/subscriptions’ \–header ‘x-api-key: <enter_your_api_key>’ \–data-raw ‘{ “subscription_plan_id”: 76215585, “email”: “[email protected]”}’ |
Conclusion
We have gone over everything you need to know when it comes to utilizing NOWPayments as a means of enabling automatic recurring payment options for your business. By creating a recurring payment plan, you can enable a much higher level of utility.
This will benefit your business in numerous ways, as you can begin accepting payments from anywhere in the world and can accept over 150 cryptocurrencies with low fees.
Furthermore, you also get a personal account manager and 24/7 support, which can aid you when it comes to integrating this procedure, making this one of the best recurring payment method options available.