Recurring Payment Stripe: How To Set Up & Manage Subscription Billing

Nailing cash flow is a must for businesses with subscription-based services or recurring billing models. Whether handling software subscriptions, membership fees, or automated invoices, a reliable payment system keeps transactions seamless and revenue steady.
Stripe provides flexible solutions, from Stripe subscription billing to the recurring payments API, allowing businesses to automate and customize their payment workflows.

For businesses operating globally, Wise simplifies international recurring payments with low fees and multi-currency accounts, reducing conversion costs and ensuring efficient transactions. You'll also learn about how Wise Business can help you avoid unnecessary fees when getting paid across curreencies.

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Table of contents

Stripe Products for Recurring Payments Receive payments in multiple currencies with Wise Business How to Set Up Recurring Payments on Stripe 1. Create a Stripe Account 2. Choose a Pricing Model 3. Set Up Recurring Payment Options 4. Integrate Stripe with Existing Payment Workflows 5. Optimize Payment Processing and Reduce Fees Recurring Payments with Stripe Billing Implement a Recurring Payment Model Other Recurring Payment Methods Final Thoughts

Stripe Products for Recurring Payments

The recurring payments market is growing fast, reaching $166.69 billion in 2024 as more businesses shift to subscription-based models.¹ Stripe offers a suite of tools that help companies automate billing, manage subscriptions, and streamline invoicing. Stripe provides flexible solutions to support recurring transactions, including subscription billing, automatic payments, or custom integrations.

Stripe Subscription Payments

For businesses offering membership plans, SaaS products, or tiered pricing, Stripe subscription payments simplifies recurring billing. Companies can create fixed, metered, or hybrid pricing structures while automating invoicing and payment collection. These features help businesses improve retention and enable seamless subscription renewals.

Stripe Automatic Payments

Managing usage-based billing or recurring invoices requires efficiency. Stripe automatic payments help businesses charge customers automatically when invoices are generated, reducing the probability of late payments. Built-in tools, such as automated reminders and dunning management, help businesses recover failed transactions and maintain cash flow.

Stripe Recurring Payments API

For companies needing custom billing solutions, Stripe recurring payments API provides the flexibility to integrate recurring payments into existing platforms. Businesses can configure multi-currency billing, dynamic pricing, and advanced usage tracking, making it an ideal option for companies with complex subscription models.

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Receive payments in multiple currencies with Wise Business

Wise can help US businesses to receive payments in multiple currencies, with low fees and the mid-market exchange rate.

A Wise Business account comes with local account details to get paid in 8+ major foreign currencies like Euros, Pounds, US Dollars, and more. These payments can come directly from your customers, as well as from PSPs like Stripe and Amazon.

All you need to do is add the relevant currency account details to the platform you need to withdraw the funds. Once you receive the payment in Euros, Dollars or other supported currencies, you can hold this money on your multi-currency account, send payments, or convert between currencies with low fees and the mid-market exchange rate.

Get started with Wise Business >>

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How to Set Up Recurring Payments on Stripe

Setting up recurring payments on Stripe allows businesses to automate billing, streamline cash flow, and manage customer subscriptions. Its many structures—fixed-price plans, usage-based billing, and tiered pricing—provide the flexibility to fit different needs. Below is a step-by-step guide to getting started.

1. Create a Stripe Account

The first step is registering for a Stripe account. Visit the Stripe website, sign up, and complete the verification process. Once set up, you’ll have access to the Stripe dashboard, where you can configure payment settings, create products, and manage recurring transactions.

2. Choose a Pricing Model

Businesses can tailor their recurring billing structure based on how they change customers:

• Fixed Pricing: Customers pay a set amount at regular intervals (e.g., monthly subscriptions).
• Usage-Based Pricing: Charges vary depending on how much of a service a customer uses.
• Tiered Pricing: Different pricing levels based on usage, features, or service levels.
  Selecting the right model keeps subscription billing in line with customer expectations and revenue goals.

3. Set Up Recurring Payment Options

To configure recurring billing, navigate to Stripe’s Products section and create a new product. Here, you can:

• Define the product name and description.
• Select the recurring payment option.
• Set the billing frequency (monthly, quarterly, annually, etc).
• Choose the preferred pricing model.

Once the product is saved, Stripe automates billing cycles, invoicing, and payment collection, reducing manual work.

4. Integrate Stripe with Existing Payment Workflows

Stripe offers multiple ways to integrate recurring payments:

• Stripe Checkout: A pre-built hosted payment page that requires minimal setup.
• Stripe Billing API: A customizable solution that allows businesses to manage subscriptions, invoices, and customer lifecycle events.

Businesses with in-house development teams may opt for the Stripe API, while those looking for an easier setup can use Stripe Checkout.

5. Optimize Payment Processing and Reduce Fees

Stripe charges 2.9% + 30¢ per successful card transaction, but businesses can optimize costs by:²

• Using ACH Direct Debit for larger recurring payments (0.8% per transaction, capped at $5).³
• Reducing failed transactions with automated payment retries and dunning management.
• Implementing localized payment methods to reduce conversion fees for international customers.
  Using these steps, businesses can efficiently set up recurring payments on Stripe for safe transactions and better financial predictability.

Recurring Payments with Stripe Billing

For businesses that rely on subscription-based revenue, Stripe Billing provides an end-to-end system for handling recurring transactions, reducing payment failures, and streamlining customer subscription management.
Here are some of its most essential features.

Automated Subscription Management

Stripe billing automates the entire subscription process, from recurring invoicing to payment collection. Businesses can create fixed, usage-based, or tiered subscription plans, and Stripe handles the billing cycles, ensuring payments are collected on time. Say goodbye to manual follow-ups and hello to a new focus on growth.

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After you get paid, send money across currencies quickly and at low cost

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Smart Payment Recovery & Dunning Management

Failed payments are a major challenge for subscription businesses, often leading to involuntary churn. Stripe Billing automatically retries failed payments and includes customizable dunning management to notify customers and prompt them to update payment details. Businesses can set retry logic based on customer behavior to maximize retention.

Customer Self-Service Portal

Stripe’s self-service portal empowers customers to manage their subscriptions, update payment details, and view billing history without needing support intervention—cutting down admin workload while improving the customer experience.

Seamless Integration with Business Workflows

Stripe billing integrates with accounting software, CRM platforms, and automation tools so businesses can sync their financial data across different platforms. Companies can connect Stripe to existing payment systems or use Stripe’s API for a fully customized billing experience.

By automating invoicing, handling failed payments, and providing a seamless subscription management experience, Stripe Billing simplifies recurring payments for businesses of all sizes.

Implement a Recurring Payment Model

Recurring payments provide a steady revenue stream while simplifying the payment process for businesses and customers alike. Choosing the right model provides predictable income, reduces churn, and aligns pricing with customer expectations.
As mentioned, Stripe subscription billing supports various recurring payment models, allowing businesses to tailor their approach based on their services and pricing strategy.

Fixed Subscription Plans

A fixed subscription model charges customers a set fee at regular intervals, typically monthly or annually. It’s a model that is widely used in SaaS, streaming platforms, and membership services where customers pay for ongoing access to a product or service.

• Predictable revenue stream for businesses
• Simple, consistent pricing for customers
• Easy to manage with automated invoicing and renewals

Usage-Based Billing

Also known as pay-as-you-go, usage-based billing charges customers based on their actual consumption of a service. This model works well for cloud storage, API-based services, and utilities where costs fluctuate based on usage.

• Provides pricing flexibility based on customer needs
• Lowers the barrier to entry for new users
• Requires accurate tracking and metered billing

Hybrid Recurring Models

A hybrid model combines elements of both fixed and usage-based billing. Businesses may charge a base subscription fee while billing extra for additional usage, premium features, or overages. This model is commonly used in SaaS platforms, telecom providers, and financial services.

• Balances predictable revenue with scalable pricing
• Allows businesses to serve multiple customer segments
• Maximizes profitability while maintaining flexibility

Other Recurring Payment Methods

While Stripe is a robust solution for recurring payments, businesses have other options —especially for handling international transactions, alternative payment methods, or specific customer preferences. Let’s look at some alternative platforms that support recurring billing and subscription management.

Payment Links/Reusable Payment Links

Stripe offers Payment Links as a flexible way to collect one-time or recurring payments without a complex checkout integration. These links allow businesses to accept payments via a simple URL, making them useful for freelancers, consultants, and subscription-based businesses.

• One-time links: Ideal for single transactions or limited-time subscriptions
• Reusable links: Allows customers to subscribe with a single click, simplifying the checkout process
  The Stripe recurring payment API helps businesses automate renewals and manage subscriptions without needing extensive backend development.## Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>

PayPal

PayPal is another widely used platform for subscription billing and recurring payments. While it offers a similar solution to Stripe subscription billing, it differs in a few key areas.

• Ease of use: Simple setup for businesses with existing PayPal accounts
• Consumer trust: PayPal is widely recognized and preferred by many customers
• Higher fees: PayPal charges higher transaction fees compared to Stripe, particularly for international payments
  For businesses focused on Stripe subscription management, PayPal may serve as a backup payment method rather than a primary solution due to its higher processing costs and limited flexibility in custom billing structures.

Helcim

Helcim provides a subscription billing platform similar to Stripe, catering primarily to small and medium-sized businesses. Its main advantages include:

• Transparent pricing: Lower processing fees and clear pricing breakdown
• Built-in customer management tools: Keep track of customer payment history and subscriptions in one place.
• No monthly fees: A more cost-effective choice for some businesses
  Compared to Stripe subscription billing, Helcim lacks extensive automation and global payment support, making it better suited for local businesses or companies with straightforward subscription models.
  Each platform offers unique advantages, and businesses should choose a solution that best fits their billing structure, customer base, and international payment needs.

Final Thoughts

Choosing the right recurring payment solution is essential for businesses looking for effortless billing and happier customers. Stripe subscription billing offers automation, flexibility, and seamless integrations, making it a top choice for managing subscriptions and recurring charges.

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Sources

Global Recurring Payments Market Insights Forecast 2024-2033 | The Business Research Company
Pricing | Stripe
US Bank Debits | Stripe