At Elevera Advisers, we’re thrilled to see our former client, Minna Technologies, recently acquired by Mastercard. This acquisition highlights the growing importance of subscription management systems for consumers, merchants, and financial institutions in today’s digital economy.
We have seen firsthand how subscription-based XaaS business models have spread from the software industry across all businesses as companies seek recurring and predictable revenue streams. More or less, all ventures are exploring subscription pricing models, seeking advice on how to leverage recurring revenue and, at the same time, deepen customer relationships without creating unfair lock-in effects leading to churn. But honestly, it wasn’t just the business appeal that grabbed my attention when we started working with Minna Technologies—it was my personal experience.
Like many, I’ve had my fair share of subscription nightmares. You know, the endless scrolling through emails to find that one confirmation link to cancel an old service or the frustration of waiting on hold for hours on the phone just to make a simple change. So when Minna approached me with a solution to manage these subscriptions directly within banking apps, I knew they were onto something big. It felt like a personal solution to my ongoing battle with subscriptions—and that was something I wanted to support.
Why Subscription Management Matters
Subscription fatigue is real. Consumers often lose track of their subscriptions, leading to unnecessary expenses. By integrating subscription management tools into banking apps, companies like Minna empower users to easily monitor, modify, and cancel their subscriptions, fostering trust and transparency. This benefits consumers and enhances loyalty and retention for merchants in the long run.
AI and the Subscription Economy: 2025 and Beyond
I’m convinced that AI will play a transformative role in the subscription economy. By 2025, we’ll see a new wave of AI-powered subscription tools that anticipate consumer behavior, predict churn, and offer personalized recommendations. Imagine being notified about a subscription you barely use or getting a suggestion to downgrade to a more cost-effective plan before you even think about it.
For businesses, this means a whole new level of customer service and engagement, helping to reduce churn while driving customer satisfaction. As the subscription economy continues to expand—projected to reach $1.5 trillion by 2025—those companies that integrate AI-driven tools will stay ahead of the curve.
A CEO's Perspective
From my vantage point, the future of the subscription economy is driven by automation, personalization, and value. The success of Minna Technologies, from a startup to its acquisition by Mastercard, is a testament to the power of addressing real consumer pain points. And as more companies move toward subscription-based models, AI will be the game-changer that shapes their growth and customer loyalty.
We can also see a rising trend for usage- or consumption-based services that, in many cases, are more fair and value-based than fixed subscription fees. It will be interesting to see how a mix of subscriptions, usage, and seat-based pricing will evolve to deliver the most effective pricing and packaging of a service - be it software, services, or even hardware products.
At Elevera Advisers, we’re here to guide businesses through these changes. With the right tools, the subscription economy offers incredible opportunities—and maybe, just maybe, fewer subscription headaches for all of us.
