SMEs face tough decisions on which subscription services to keep as cost of living crisis continues
New research from Barclaycard Payments has found that cost of living increases are set to impact Business-to-Business (B2B) subscriptions in the UK as nearly half (49%) are considering reducing the number of services they subscribe to, as they tackle rising costs.
As subscription services have grown in popularity amongst consumers, so too have they among businesses. Half (49%) of UK SMEs say they currently use some sort of subscription service that helps them to run their business, spending on average £183 per month.
Four in five (82%) say that subscription services save their business time by delivering products and services they need regularly, without having to place repeat orders. A similar number (84%) say subscription services give them a feeling of security because they know things that are important to their business are taken care of.
Despite this, nearly half (49%) report that their business is considering reducing the number of services they subscribe to. Four in ten (38%) are actively looking to decrease the number of subscriptions they use, with the main reason being to reduce the running costs of business (39%). Three quarters (76%) of SMEs with a subscription say that such services can help their business to manage finances at a time of rising costs.
Harshna Cayley, head of online payments at Barclaycard Payments, said: “The battle for subscribers is likely to get even tougher in the coming months as many businesses look to cut costs, and become more selective about what they pay for going forward.
“Many businesses told us that they want to see the services they subscribe to work together more seamlessly. That’s why we’re launching Smartpay Touch, with an all-in-one cost, making it easier than ever for businesses to access the data they need to help them to thrive.
“We’re also offering small businesses that bank with us or have Barclaycard business product a free subscription to FreshBooks accounting software, to help them manage their finances.”