Tyres on subscription: GoCardless powers Bridgestone’s MOBOX in the UK
Last editedSep 20202 min read
We’re pleased to announce that GoCardless will power the recurring payment collection for Bridgestone’s new tyre subscription service MOBOX.
MOBOX, which recently launched in the UK, is an all-inclusive monthly subscription service offering new tyres alongside other vehicle-related services, at an affordable price per month. Already available in France, Germany, Italy and Spain, MOBOX now brings convenience and peace of mind to UK drivers.
MOBOX customers in the UK can now pay via GoCardless to enjoy a frictionless payment experience. And, thanks to the end-to-end integration of the GoCardless API, Bridgestone will have complete access to real-time information on the status of their payments. This visibility will help reduce costs and minimise the time spent on administration.
The future is subscription-based
GoCardless research shows that almost half (48%) of UK consumers say bank debit - the payment mechanism GoCardless uses to power payment collection - is their preferred payment method for digital subscriptions. 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.
And any business collecting on a subscription model needs to minimise the problem of failed payments. GoCardless’ latest Payment Success Index highlights payments collected on a subscription basis have an average failure rate of just 2.2% - compared to invoice payments (3.1%) and instalments (4.9%).
Another concern for subscription businesses is involuntary churn, typically caused by failed credit and debit card payments. It’s estimated that 30% 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.
In addition to the low overall failure rates MOBOX can expect, any failed transactions on the GoCardless payment gateway will be managed by our payment intelligence tool, Success+. Success+ can recover up to 76% of all payments that fail at the first attempt.
Optimising the customer journey
Speaking about the new relationship, 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.”
We’re delighted to partner with Bridgestone, which recognises the importance of offering the right payment options to meet their customer expectations. Choosing the wrong payment method adds unnecessary complexity and cost to your business, choosing the right one helps businesses collect payments with more predictability.