Discover the Profit Potential of Tech Company Bango in the Subscription Economy
The global subscription economy has experienced significant growth in recent years, with consumers spending over £210 billion on subscriptions in 2022. Experts predict that this figure will rise to over £450 billion within the next three years. While individual companies may experience fluctuations in their fortunes, the overall trend is clear: more and more businesses are offering their products and services through monthly subscription payments.
While music and movies initially paved the way for the subscription economy, the range of offerings has expanded dramatically. Consumers can now subscribe to online yoga and language lessons, regular deliveries of household essentials like toilet paper, cheese, and chocolate, and even entertainment services for their pets. However, with this increasing list of subscriptions, it can become challenging to keep track of purchases, costs, and preferences.
This is where Bango comes in. As a tech company based in Cambridge, Bango simplifies the process of charging customers and facilitating payments for businesses. Originally founded in 1999 with a focus on enabling mobile payments for music and video games, Bango has since grown exponentially. They now serve major global companies like Amazon, Google, Microsoft, and telecom giants such as Vodafone, Samsung, and AT&T.
In 2022 alone, Bango processed over £7 billion in consumer payments worldwide. The company also made a significant acquisition by purchasing Docomo, a major Japanese rival, which is expected to boost sales and profits. Bango now offers a new division that consolidates and manages all of a customer’s subscriptions in one place. This feature makes it easier for users to add, cancel, upgrade, or downgrade their subscriptions.
Bango’s service benefits both mobile phone providers and businesses. Telecom companies can attract and retain customers by offering discounts and promotions along the way. Meanwhile, businesses gain access to millions of potential subscribers and receive valuable data to provide personalized recommendations to consumers. This approach, known as super-bundling, has already been adopted by companies like Verizon and Optus, with others expected to follow suit.
According to a recent survey, 88% of major phone companies in the UK and US plan to offer super-bundling in the near future. Bango is the dominant player in this market and is highly regarded by its customers, outperforming competitors in leaps and bounds.
Bango’s technology has also attracted interest from other industries. For example, Japanese employee benefits specialist Benefits One is utilizing Bango’s technology to offer additional perks to millions of workers. Brokers anticipate substantial growth for Bango, with revenue projected to increase by 73% this year to $49 million (£38 million) and a further 16% in 2024 to $57 million. After a loss-making year in 2022, the company is expected to generate profits of $3.4 million this year, soaring to $14 million next year.
In recognition of its international trade achievements, Bango received the prestigious King’s Award for Enterprise earlier this year. Despite a slight decline in share price due to broader market concerns about technology stocks, supportive brokers believe that Bango shares could reach £3.15 as the subscription business expands and the company becomes profitable. Investors seeking a smart opportunity in the tech sector should consider buying Bango shares.
For more information about Bango and its offerings, visit bango.com or contact 01223 617 387.
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