A recurring payment is a financial transaction that occurs automatically at regular intervals, such as weekly, monthly, or annually. This type of payment is commonly used for services like subscriptions to streaming platforms, gym memberships, or utility bills. It simplifies the payment process by eliminating the need for manual transactions each time a payment is due. Businesses often set up recurring payments to ensure consistent cash flow and reduce the risk of late payments. Customers benefit from the convenience of not having to remember due dates, as the payments are automatically deducted from their bank accounts or charged to their credit cards.