In subscription and billing management, a merchant is a business entity that sells goods or services to customers on a recurring basis. A merchant typically sets up a subscription model, where customers are charged automatically at regular intervals for access to the goods or services. This type of business model is commonly used for products such as SaaS, online content, and physical goods that are delivered on a recurring basis.
In this context, the merchant is responsible for managing the subscription management platform, including setting up recurring payment plans, collecting payments from customers, and providing customer support. They also typically use payment gateways, billing platforms, and other tools to manage the billing and payment process and ensure a seamless customer experience.
In fact, merchants are critical players in the subscription and billing management process, as they play a crucial role in managing the entire process from start to finish.
Some of the key roles that are merchant plays in a subscription business include that of a product owner, payment processor, customer support, marketing head, analytics, and reporting personnel, compliance monitor, and most importantly finance manager.
The merchant is also responsible for generating revenue through the sale of their goods or services on a recurring basis, which is a key component of the subscription and billing business model. He/she is responsible for providing a positive customer experience, which is critical to customer retention and reducing churn. This includes providing high-quality products or services, as well as managing the billing and payment process efficiently and effectively.