eCommerceM&APaymentsStartups

Automattic acquires subscription payment company Prospress

Automattic, the company behind WordPress.com, WooCommerce, Longreads, Simplenote and a bunch of other cool things, is acquiring a tiny startup named
Prospress. Among other things, Prospress has developed WooCommerce Subscriptions, a recurring payment solution specifically designed for WooCommerce.

Given that physical and digital subscriptions are taking over the e-commerce world, it makes sense that Automattic wants to own WooCommerce Subscriptions. Charging customers on an orderly basis is one of the most painful challenges when it comes to payment.

Prospress also works on a marketing automation equipment to remind customers that they have abandoned their carts, follow up, cross vend and more. The company also has an equipment to experiment your checkout functionality before going live. After the acquisition, the Prospress group will keep iterating on its own products and join the rest of the WooCommerce group.

This is a strategic acquisition more than anything else. Prospress has around 20 employees, so it’s not going to change the face of Automattic and its group of 900 people. But it’s an important move so that Automattic can own a bigger chunk of the (e-commerce) stack.

WooCommerce opposition Shopify doesn’t provide subscriptions out of the box. You have to use third-party products, such as Bold or ReCharge.

Like WordPress, WooCommerce is an open-source project — it integrates directly with WordPress. It means that anyone can download WooCommerce and host it on their servers. And the WooCommerce ecosystem is one of the main advantages of WooCommerce compared to obscure e-commerce solutions.

Many WooCommerce users probably host their e-commerce website on WordPress.com. But by controlling the payment module, Automattic can also generate some revenue if WooCommerce users select to use WooCommerce Subscriptions as their payment solution.

Source
TechCrunch
Tags

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close