Netflix, Uber, and Spotify are the giants, but there are also many smaller, but highly popular businesses such as HelloFresh, Stitch Fix, and so on.
These companies all sell different things. But outside of what they sell, a key reason for the success of the business model is how they manage payments.
Consider this. In any given month, a percentage of transactions may fail, for reasons such as lack of funds, expired cards, technical failure, or something else. These percentages can vary widely depending on market, payment method, business type, and so on. But at a hundred thousand recurring customers per month, that could potentially translate to several thousand customers being involuntarily lost month-on-month just from payment failures alone.
Spoiler alert: companies that are successful with the subscription and recurring business model do not lose this amount of customers due to payment failures. Instead, they see payments as a strategic consideration, and invest in different ways to ensure they successfully process as many as possible.