Recurring payments are automatic transactions that occur at regular intervals, such as weekly, monthly, or annually. They are commonly used for services like subscriptions, utility bills, and loan repayments. This system allows customers to set up payments in advance, ensuring that they are made on time without the need for manual intervention. Businesses benefit from recurring payments as they provide a steady cash flow and reduce the risk of late payments. Customers often appreciate the convenience, as it simplifies budgeting and eliminates the hassle of remembering due dates. Examples of services that use recurring payments include Netflix, Spotify, and gym memberships.