Bridgestone uses GoCardless for Mobox tyre subscription system in the UK
Bridgestone will be using GoCardless to facilitate the recurring payment function necessary for its Mobox tyre subscription service. Already available in France, Germany, Italy and Spain, Mobox customers in the UK can pay via GoCardless for a “frictionless payment experience.” Furthermore, because of the end-to-end integration of the GoCardless API, Bridgestone will have access to real-time information on the status of mandates and payments – in turn, reducing costs and time spent on administration.
GoCardless research shows that almost half (48%) of UK consumers say bank debit is their favoured payment method for recurring payments. It’s also clear that consumer behaviour is shifting to a subscription-based model. Zuora’s ‘End of Ownership Report’ highlights three quarters (74%) of consumers believe people will subscribe to more services and own fewer physical goods in the future.
Another concern for subscription businesses is involuntary churn, typically caused by failed credit and debit card payments. It’s estimated that 30 per cent of all churn is involuntary, which is even more reason to choose a payment provider that can help reduce failure rates as low as possible. GoCardless’ latest Payment Success Index highlights payments collected on an instalment basis have an average failure rate of 4.9 per cent – compared to invoice payments (3.1%) and subscriptions (2.2%).
Andrea Manenti, vice president, North Region, Bridgestone said: “The growing global popularity for the service economy provides us with a great opportunity to diversify our customer offering and bring added convenience. We want to provide our customers with the best service at every point in their journey with Bridgestone – from premium products and solutions to the way they pay.
“With Bridgestone and GoCardless, our customers have full visibility of their payments each month – easy and transparent. Working closely with GoCardless helps us reduce time spent on administration and frees up resources to optimise the customer journey.”