Know Various Subscription Models That Merchants Can Provide Via E-Mandate

Business owners that charge customers on a subscription basis undergo evolution over time, and that evolution brings along the requirement for these businesses to possess a greater degree of control as well as adaptability so over the types of services they can provide their subscribers as well as the prices that are connected to these plans. A “one-size-fits-all” strategy for running a business is almost never successful, and running a subscription service, in the same manner, is unlikely to be successful. The customer has a right to believe that they will be getting value for their money, and the retailer has an obligation to be capable of setting prices in such a way that they highlight this value. When a company is organized and runs efficiently, there is a lower rate of customer turnover and a higher level of overall customer satisfaction.

You are now given the ability to establish a mandate for automated transactions if you pay merchants on a consistent basis using debit, credit, or prepaid cards. In the same way that an equivalent monthly installment (EMI) is automatically withdrawn from your savings account on a daily basis, you may also make comparable recurring payments to retailers. The Reserve Bank of India has placed a limit of 2,000 rupees (INR) on the amount that can be charged for these kinds of recurrent payments. There will not be any fees associated with this transaction.

The definition of term “e-mandate” refers to the digital form of mandates that companies utilize to efficiently manage numerous sorts of recurring payments. The registration for e-mandate method has the potential to remove the difficulties of sending reminders, including requesting penalty charges from the perspective of the consumers, which ultimately shows to be a win-win situation for all parties involved.

Here are various subscription models under e-mandate registration.

The access subscription model

The vast majority of users participate in the subscription-based form of access. These are known as e-commerce subscriptions, and they require customers to pay a set amount on a recurring basis (either monthly or annually) in order to gain access to the services offered by the e-commerce subscription. This allows customers the freedom to select the eCommerce items they need anytime they want, giving them more flexibility.

Replenishment model

Customers should make it a habit to buy certain goods on a consistent basis, including groceries, food products, drugs, as well as health products, among many other things. These are kinds of things that the vast majority of individuals have to go out and buy once a week or once a month. These are the kinds of products that lend themselves particularly well to being resupplied through an automatic subscription service.

Consumers can be provided with goods on a consistent and ongoing basis through the use of a replenishment subscription model, which eliminates the need for individuals to place purchases individually each time they want new products. In other words, using this model, they are able to automate the purchasing process. This is among the most efficient subscription models under e-mandate registration.

Add-on subscriptions

Whenever a company sells goods and services on a one-time basis but also gives customers the opportunity to purchase them as parts of a subscription plan, this type of transaction is referred to as an add-on subscription. Add-on subscriptions provide the advantage of creating a regular revenue stream while not being wholly dependent on a subscription business model. This benefit is offered by add-on subscriptions. To summarize, it is an excellent approach to test the waters of subscription selling to determine whether or not it is something that consumers are interested in purchasing.

The curation subscription model

The “surprise” component is essential to the functioning of the curated subscription model. In this business model, the clients are not informed about which items will be contained in each shipment that is sent out to them. In this business model, retailers will acquire a variety of products and then send these to customers at intervals that have been established.


With new RBI rules and e-mandate registration for recurring billing, the service providers require e-mandate to get the customer’s consent for charging them. So, the merchants need to know that these subscription models can help them under new rules.