Paul-Christian Stoy, Maximilian van Boxel, Spencer McClain and Craig Savage/Fero
Dutch fintech Fero raises $3m for online payments customisation
The fintech analyses customer behaviour to enable retailers to provide individual users with a personalised checkout experience
Dutch online payment solution Fero has closed a $3m funding round.
Led by Antler, Volta Ventures and Coatue, Fero will use the funding to build out its team across the US and Europe and bolster its product offerings to cater to more retailers.
The fintech enables companies to provide bespoke checkout experiences and payment journeys to individual customers to increase conversion rates and reduce fraud.
“As a payments data scientist, I was shocked when I started to uncover the level of abandonment during the checkout and payment journey,” Fero co-founder and CEO Craig Savage said.
“Today, upwards of 45 per cent of customers place items in their shopping cart, but never finalise their purchase due to payment related issues. This translates to over $5.2 trillion of lost revenue per year.”
Savage founded the fintech alongside chief operating officer Maximilian van Boxel after working together at Ekata, a global payments solution which was acquired by Mastercard in 2021.
He added that the team founded Fero to help retailers give their customers a “more seamless and customised” shopping experience.
Currently, merchants lose out on $5 trillion of annual revenue at the point of checkout, according to Fero.
“While payment innovations have made transactions faster and more seamless, few solutions have looked at the behaviour of shoppers to understand why so many items are left un-purchased in the online shopping cart,” Coatue partner Elena Sakach said.
“It’s exciting to see the Fero team take a unique approach that leverages behaviour analytics to deliver purchase solutions that will improve the shopping experience and drive revenue for retailers.”
Analysing each shopper’s behaviour and activity, Fero predicts the likelihood of purchase completion, learning a shopper’s purchasing preference to optimise their payment experience.
This includes customised payment methods and future payment journeys, such as reducing the friction of authentication challenges.
Based in the Netherlands, Fero will use the funds to expand across Europe and the US.