Subscription Payment vs One-Time Payment? What Works for You and Why?

Following our post on whether subscription payment, is a technological blessing or curse, we will be comparing subscription payment vs one-time payment.

“What works for you and why”? Because people are different, the way we think, act, relate and even make payment is different. So, having a discussion on this topic would be a great idea.

What is Subscription Payment?

Subscription payment is a system that enables people to pay for services on a daily, weekly, monthly and yearly basis.

Subscription payments have this automated feel around them because your account is automatically renewed, you are automatically charged or billed and the process is just stress-free -bringing to customers, that convenience that everybody loves.

Subscriptions payments have cycles and what this means is if you make an initial one-month payment, at the end of the month, that cycle ends and a new month is automatically paid for as long as there is money in the customer’s account which is the beginning of another cycle.

What is One-time Payment?

As the name implies, this type of payment is only done once. A customer sees a product and makes a one-time payment and now owns the product.

What does this mean? This means that after a month or year, the customer doesn’t need to make any type of payment for that same product again because he has paid it all in a one-time payment.
Subscription Payment vs one time payment

Subscription Payment VS One-time Payment

Subscription Payment: Gives customers more flexibility because you have to freedom to cancel, upgrade or downgrade your current plan at any given time.
One-time Payment: Customers sometimes get the feeling of being locked in a contract because their mindset can change at any time and they want to explore other options but they can’t.

Subscription Payment: Subscription Payment can be extremely convenient but also deadly at the same time because as soon as a cycle ends, the customer is billed automatically which can be a good thing if the customer enjoyed the service during the first cycle but if service wasn’t good enough and the customer forgets to cancel the subscription, he or she would be billed at the start of the new cycle.
One-time Payment: The customer after making payment once doesn’t need to worry about any other cycle or payment.

Subscription Payment: Subscription plans are cheaper because they are broken down into days, months and years and this suitable for customers because they can choose the plan they want based on their budget and needs.
One-time Payment: The initial cost usually scares customers away because they don’t have that amount yet but they are likely to have that amount in some months time so some save while some opt-in for subscription payment.

Subscription Payment: In Nigeria, subscription payments are used mostly for services like web hosting, cable TV, internet plans, equipment maintenance and so on rather than for purchasing products.
One-time payment: In Nigeria, one-time payments are mostly used to purchase products like smartphones, laptops, and vehicles.


Now that you have an idea about subscription and one-time payments. You can start relating these forms of payments to your life and how you make payments.

Do you use more of Subscription Payments over One-time payments?
Do you use more of one-time payments over subscription payments?


TechAdvance is a payment application development company with a strategic focus in developing and deploying niche payment companies to serve the needs of large public and private sector organisations in Nigeria.

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