Recurring payment or single payment: how to decide for your business
2026-02-15
Choosing between a recurring payment and a single payment is one of the most strategic decisions you can make for your business. It’s not just a question of how the money arrives, but how you build your revenue model and the relationship with your clients.
A single payment is a one-time, direct transaction. It gives you liquidity immediately. On the other hand, recurring payment establishes a constant and predictable income flow through automated collections, completely transforming your company’s financial stability.
Key differences between recurring and single payment
To decide which model fits you best, you have to look beyond the obvious. It’s not just about collecting once or several times, but how each option affects daily operations, client management, and your business’s financial health in the long term.
Single payment is the traditional model: a client buys a product or contracts a service and pays once. The commercial relationship, essentially, ends there. On the other hand, recurring payment is based on building a continuous relationship. The client authorizes you to make periodic collections automatically, which turns the transaction into a service. A clear example of this are business models like Software as a Service (SaaS), which live by this philosophy.
The impact on the client relationship
This is where the difference becomes most palpable. With single payment, your effort constantly focuses on attracting new buyers, because each sale is a new beginning. It’s a model that depends on continuous acquisition.
On the other hand, the recurring model turns a buyer into a subscriber. The focus shifts from acquisition to retention, seeking to increase the client’s value over time (known as Customer Lifetime Value or LTV).
The choice isn’t just financial, it’s a statement of intent. A recurring model seeks to create trust and retain, while the single one focuses on one-time conversion.
Predictability vs. financial flexibility
From a cash flow perspective, each model has its strength. Recurring payments give you income predictability that’s pure gold for financial planning. Knowing how much you’ll invoice next month simplifies everything.
Single payments, although more unpredictable, inject immediate liquidity into the cash register. In addition, they avoid the administrative complexity involved in managing subscriptions, SEPA mandates, and possible cancellations.
To see it more clearly, here’s a summary of the fundamental differences:
| Feature | Recurring Payment | Single Payment |
|---|---|---|
| Cash Flow | Predictable and constant | Irregular and immediate |
| Client Relationship | Long-term, based on retention | Short-term, transactional |
| Management | Greater complexity (mandates, cancellations) | Simple and direct per transaction |
| Strategic Focus | Retention and client value (LTV) | Acquisition of new clients |
The adoption of recurring payments, especially through bank direct debits, keeps growing. In the first half of 2025 alone, direct debits in Spain managed 1.143 billion operations worth 352 billion euros, 4.1% more than the previous year. This demonstrates the weight they have in the economy.
Understanding these differences well is the first step for your collection strategy to be aligned with what you want to achieve. And if you want to go deeper into payment mechanisms, we recommend reading our article on SEPA bank transfers.
Comparative analysis: which collection model suits you best?
The decision between a recurring payment or a single one goes far beyond a simple administrative choice. It’s a strategic decision that shapes your SME’s financial health, defines your team’s workload, and, most importantly, builds a very specific type of relationship with your clients.
To choose wisely, you have to put each model under the microscope and see how it impacts day-to-day life. It’s not just about how the money comes in, but aligning your way of collecting with your true business objectives.
The eternal question: income predictability vs. immediate liquidity
Cash flow is the oxygen of any company, and this is where the two models completely diverge. A recurring payment system gives you financial predictability that’s pure gold. Knowing, roughly, how much you’ll earn each month allows you to plan investments, expenses, and even hiring with much more security.
On the other hand, single payment provides you with instant liquidity. Each sale is a direct cash injection into your account, something vital for businesses that need to recover what they’ve invested quickly or that handle products with high inventory costs.
The key is finding the balance: the peace of mind of stable income (recurring) versus the agility of having funds available right after a sale (single).
This difference is reflected in trends. During the first half of 2025, card payments—generally single—reached 6.178 billion operations, with a fairly low average value of 31.6 euros. If we compare this with the more stable growth of direct debits (+4.1% in volume), we see a clear pattern: single payments are perfect for one-time transactions and lower amounts, while recurring ones are associated with services and more predictable fees, as you can see in the latest statistics on cashless payments.
The client at the center: retention vs. acquisition
A recurring payment isn’t just a collection, it’s the beginning of a relationship. It transforms a simple purchase into a continuous service, which fosters a much stronger and longer-lasting connection. All the effort focuses on retention and increasing the client’s value in the long term (LTV).
On the other hand, the single payment model depends on constant acquisition of new buyers. Each sale is a cycle that begins and ends, which, in the long run, can drive up marketing and sales costs.
To make it clearer: * Recurring model: Creates loyalty. A client happy with their subscription has no reason to go to the competition. * Single model: Forces you to always be looking for new clients. Each sale is a victory, but also a new acquisition cost to assume.
Behind the scenes: operational complexity and management costs
Simplicity is a factor we can’t ignore. Single payments are, by definition, simpler to manage. One collection, one operation. There’s no more story or complex tracking behind it.
Recurring payments, on the other hand, bring with them a greater administrative burden. You need a robust system to handle: * SEPA mandates: Getting, storing, and managing your clients’ authorizations is an indispensable requirement. * Return control: You have to stay on top of failed or returned collections to claim them on time. * Cancellation management: Processing subscriber cancellations quickly is key to maintaining a good image.
Although tools like ConversorSEPA are designed precisely to automate much of these tasks, it’s fundamental to be aware that a recurring model needs infrastructure that works flawlessly.
To help you visualize these differences better, we’ve prepared a table that summarizes the most important points.
Comparison of criteria between recurring and single payment
This table will serve as a quick guide to see at a glance which model best fits your operational and strategic needs.
| Evaluation Criterion | Recurring Payment | Single Payment |
|---|---|---|
| Cash flow | Stable and predictable. Perfect for long-term planning. | Irregular but immediate. Improves short-term liquidity. |
| Relationship with client | Continuous and long-term. The focus is on retention. | Transactional and one-time. The focus is on closing the sale. |
| Operational management | Requires managing mandates, returns, and cancellations. | Simple and direct. A single operation per sale. |
| Associated costs | Lower acquisition cost in the future, but higher management cost. | Higher cost to acquire each client, but lower technical complexity. |
In the end, the best decision depends on you. Analyze these factors thinking about your product, your ideal client, and your goals. There’s no universal answer, only the one that best fits your business’s reality.
How SEPA regulations work in each payment type
To move between a recurring payment or single payment within Europe, it’s fundamental to understand the framework that regulates everything: the Single Euro Payments Area (SEPA). This regulation isn’t just a set of rules, but the common language that allows companies and clients to make cross-border transactions with the same agility and cost as if they were national.
Mastering SEPA mechanisms is key. A small error when generating a file or managing a mandate can end in bank returns, unexpected costs, and, worse, a bad experience for the client. So let’s break down how each SEPA instrument works and what you need to use them without surprises.
SEPA direct debits: the engine of recurring payments
SEPA bank direct debit (SEPA Direct Debit) is, without a doubt, the star tool for recurring payments. It allows a company to initiate a collection directly in a client’s account, as long as they’ve given prior authorization.
This system is the backbone of business models like subscriptions, gym fees, or monthly service payments. Its great advantage is automation: once configured, the collection process executes periodically without the client having to do anything for each payment.
SEPA direct debit transforms collection into a proactive process. Instead of waiting for the client to pay, the company takes the initiative on agreed dates, which guarantees a much more predictable cash flow.
Now, to be able to make these collections, there’s a requirement you can’t skip: the SEPA mandate.
The SEPA mandate: the essential authorization
A SEPA mandate is much more than a simple form. It’s the legal contract with which your client authorizes you to charge receipts to their account. Without a valid, signed, and well-kept mandate, any direct debit can be returned by the bank.
For it to be valid, each mandate must include very specific information: * Creditor identification: Your data as a company. * Debtor identification: The client’s data. * Account number (IBAN): The account from which it will be collected. * Unique Mandate Reference (UMR): A unique code that identifies that specific authorization. * Payment type: Whether it will be recurring or one-time (OOFF).
Managing mandates manually can be a constant source of errors. Fortunately, solutions like ConversorSEPA allow you to generate PDF mandates ready to sign, greatly simplifying this critical step. If you want to go deeper, you can check out our complete guide on SEPA direct debit.
SEPA transfers: the solution for single payments
When we talk about single payments, the SEPA tool par excellence is the bank transfer (SEPA Credit Transfer). Here the process is reversed: it’s the client who initiates the payment order from their bank to your company’s account.
This method is perfect for situations like: * Selling a product in an e-commerce. * Paying an invoice for a one-time service. * Any transaction that won’t be repeated over time.
The great advantage of transfers is their operational simplicity for the collector, since it doesn’t require managing mandates or tracking authorizations. However, it places you in a passive position, at the mercy of the client remembering and executing the payment on time.
CORE and B2B schemes: which to use in each case?
Within SEPA direct debits, there are two main schemes. Knowing their differences is vital to avoid problems.
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CORE scheme (or B2C): This is the most common and is designed for transactions with end consumers (individuals). It offers very high protection to the client, who has the right to request the return of an authorized charge up to 8 weeks after collection. If the charge wasn’t authorized (for example, if there was no valid mandate), that period extends to 13 months.
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B2B scheme (Business-to-Business): This scheme is exclusive for transactions between companies and freelancers. The fundamental difference is that the debtor waives their right to return once the charge has been authorized. In exchange, their bank is required to verify each collection against the mandate information, which the client has had to register previously with their institution.
The choice is quite clear: if your client is an individual, you should always use the CORE scheme. If it’s another company, B2B gives you much more security against returns, but requires more rigorous management by both banks.
When to choose each model according to your business type
The decision between a recurring payment or a single payment isn’t something to be taken lightly. In reality, it’s a strategic pillar that will define how you relate to your clients and, above all, how you manage your SME’s cash flow. There’s no universal answer here; the key is to look inward, analyze your business model, the value you provide, and what your clients expect from you.
To help you make an informed decision, it’s useful to think of this as a path that branches according to the nature of your service. This decision tree simplifies the initial choice quite a bit if we move within the SEPA payments ecosystem.
As seen in the infographic, business models based on continuous services or prolonged access to something benefit from the predictability of recurring payments. On the other hand, “buy and done” transactions fit like a glove with the simplicity of single payments.
Ideal scenarios for recurring payment
The recurring payment model is the true engine of businesses that live from a long-term relationship with their clients. If your company fits into any of these categories, SEPA direct debit will be your best ally.
- SaaS and software companies: If you sell access to a platform, an online tool, or any software, monthly or annual recurring collection is, without a doubt, the industry standard. It allows you to have solid financial planning and aligns your income with the value you provide month by month.
- Professional services with fixed fees: Are you an accounting firm, tax office, marketing agency, or consultant who works with monthly retainers? This model will change your life. Automating the collection of those fixed fees takes away the need to chase invoices and ensures liquidity.
- Gyms, training centers, and clubs: Any business that offers access to its facilities or educational programs for a prolonged period will see that recurring fees are the most efficient way to manage their members or students.
A well-set-up recurring model drastically reduces delinquency. When you automate collection with a SEPA direct debit, payment stops depending on the client remembering and doing it manually. This improves the on-time collection rate by more than 95% in many sectors.
The payments market in Spain, which already reached 25 billion euros, is expected to grow to 26 billion in the next five years, growth driven by the jump to digital payments. With 79% of Spanish consumers already preferring digital payment methods, choosing your collection model well is fundamental to getting a piece of this pie.
When single payment is the best option
Despite all the benefits of the recurring model, single payment remains the most logical and direct option for a huge variety of businesses. Its simplicity and the immediacy with which you receive the money make it irreplaceable in certain scenarios.
- E-commerce and product sales: For any online store that sells physical goods, single payment is king. The client pays for a product, receives it, and the transaction closes cleanly and directly. End of story.
- Project or one-time services: If you’re a professional like a designer, developer, or consultant who works on closed projects, single payments are for you. You can structure them by milestones (one payment at the start, another in the middle, and one at the end), but each of them remains an individual transaction.
- Variable-cost service invoicing: Think of utility companies, telecommunications, or any service whose consumption changes each month. Normally, they issue invoices for different amounts. Although they’re collected monthly, each invoice represents a single payment for what was consumed in that specific period.
In businesses that handle high-value services, like renovations, it’s fundamental to understand how clients finance their projects. For example, it’s very common for someone to request a loan for renovations to cover costs. For the construction company, this translates into receiving one or several single payments as the project progresses.
The hybrid model: a smart strategy
But, why choose? You don’t have to limit yourself to a single model. A hybrid strategy, combining the best of single and recurring payments, can be the most profitable and flexible solution for your business.
Imagine a software company: it can offer its monthly subscription (recurring payment) and, at the same time, sell training packages or implementation services with a one-time cost.
This flexibility allows you to adapt to your clients’ different needs, maximizing opportunities to generate income and building a much stronger business model prepared to grow.
How to automate your payments with ConversorSEPA
Okay, you’ve already chosen between a recurring payment or a single payment for your business. Now comes the real challenge: how to manage all this without it becoming an operational nightmare? Let’s be honest, generating SEPA XML files manually is a technical process, full of pitfalls, and devours time you could dedicate to other things.
This is where technology comes into play as your best ally. ConversorSEPA was born precisely to break down that barrier. We want any SME, accounting firm, or administration department to be able to create their bank batches in minutes, without knowing anything about programming or the ins and outs of the XML format.
The philosophy is simple: you give us your collection data and we take care of the technical part, guaranteeing that the file you generate complies with all banking regulations. Nothing more, nothing less.
From Excel to SEPA file in three steps
For many companies, the great leap is going from their usual data (almost always in Excel or CSV) to the XML format their bank asks for. With ConversorSEPA, we’ve converted that technical and tedious task into something you can do while having a coffee.
- Upload your file: You just have to drag and drop your Excel or CSV file with the direct debit or transfer data you want to make.
- Map the columns: Our interface guides you intuitively so you can tell it which column of your file corresponds to each SEPA data (the IBAN, amount, concept…).
- Download the XML: One click and done. You have in your hands a perfect, validated SEPA XML file ready to upload to your online banking.
This system not only saves you incredible time, but reduces the risk of human errors to almost zero. Those small mistakes that end with an entire batch rejected by the bank. If you want to see the process in detail, check out our article on how the SEPA converter works.
Key features for error-free management
Our tool goes beyond simple conversion. It’s designed to protect you from typical mistakes that cost time and money. Because in collection management, prevention is much better than cure.
A simple error in an IBAN or an incorrect file structure can paralyze the collection of dozens or hundreds of invoices. Our automatic validation system acts as a security filter, identifying these problems before they reach the bank.
We’ve included specific functions to make your batches impeccable: * IBAN validation: We instantly verify that your clients’ account numbers have the correct format. This avoids returns due to incorrect data. * Support for old formats: Does your system still generate files with old regulations like AEB notebooks 19, 34, or 58? Don’t worry, we convert them to the current SEPA standard without you having to do anything. * Data security: We take confidentiality very seriously. All data travels encrypted end-to-end and your files are deleted from our servers 10 minutes after conversion.
Total automation with our API for technical teams
If your company handles a large volume of operations or you already work with an ERP or your own management software, automation is the next logical step. Manual tasks, no matter how simple they seem, always consume resources you could be using to grow the business.
Our JSON API is designed so your development team can integrate SEPA file generation directly into your systems. This allows complete automation of the collection cycle, whether it’s a recurring payment or a single one.
Imagine a workflow like this: 1. Your ERP or CRM generates the data for the day’s batch. 2. Automatically, it sends that data to our API. 3. The API processes it, validates IBANs instantly, and returns the correct SEPA XML file ready in seconds. 4. That file can be sent directly to the bank, also automatically if you have that integration configured.
This level of automation eliminates human intervention in file creation. The result is evident: zero manual errors, a huge time savings for the administration team, and the ability to scale your collection process without limits, whether you manage ten transactions per month or ten thousand.
Frequently asked questions about payment models
To finish this analysis on recurring and single payments, it’s normal for questions to arise in day-to-day life. Administration departments encounter very specific situations where theory has to be applied well to avoid errors, returns, and costs that weren’t in the script.
Here we answer the most common questions we receive. The idea is to reinforce key concepts and give you a quick reference guide so you can manage your collections effectively and, above all, securely.
What exactly is a SEPA mandate and why is it so important for recurring payments?
A SEPA mandate is, in short, the signed authorization from your client that gives you the green light to charge receipts to their account. It’s not a simple bureaucratic procedure, but a document with full legal validity. Its function is to protect both parties: the client knows the charges are consented to and your business has a solid basis for collecting.
If you don’t have a valid mandate, properly filled out and safely stored, any direct debit you issue can be returned by the client’s bank. And watch out, because the period for them to claim an unauthorized charge is up to 13 months. This represents a financial risk and an administrative headache that’s better to avoid.
Imagine the SEPA mandate as the foundation of your recurring collection system. If those foundations fail or don’t exist at all, the entire structure can come crashing down with the first claim.
Tools like ConversorSEPA make it easy by generating these mandates in PDF, ready to sign. This ensures they include all mandatory information, you comply with regulations, and you minimize risks.
Can I issue a SEPA direct debit for a one-time collection?
Technically, yes, it’s possible. The SEPA direct debit scheme itself allows marking a collection as OOFF (One-Off), which literally means “single payment”. This tells the system that, after that charge, the associated mandate might not be used again.
Now, being practical, for a one-time payment the most direct and simple thing is a SEPA transfer. Why? Because you save yourself all the prior mandate management. Resorting to a direct debit for an isolated operation only makes sense in very specific cases, for example, if you already have an active mandate with that client for other services and need to make an exceptional charge.
In summary: * For single payments: SEPA transfer is the shortest and most efficient path. * For recurring payments: SEPA direct debit is the star tool, no question.
My company already has an ERP, what does your API offer me?
Even the most complete and powerful ERPs sometimes fall short when generating SEPA XML files. It’s common for their treasury modules to be somewhat rigid, not update with the agility regulations require, or need custom (and expensive) development to adapt to each bank’s requirements.
Our API works as a flexible and always up-to-date bridge that connects with your system. The process is very simple: 1. Your ERP exports the collection or payment data in a simple format, like CSV or JSON. 2. It sends that data to our API automatically. 3. The API processes it, validates IBANs instantly, and generates the correct SEPA XML file, returning it to your system ready to be sent to the bank.
With this you automate a key step in your collections without having to touch a line of code in your main software. You save development costs, guarantee you always comply with regulations, and free your team from repetitive manual tasks. It’s, without a doubt, the smartest way to optimize your treasury operations.
Simplify the management of your collections and payments, whether recurring or single. With ConversorSEPA, convert your Excel or CSV files into validated SEPA XML files in seconds, or automate the entire process with our powerful API.
Try ConversorSEPA free for 7 days and optimize your treasury
