Amsterdam-based FERO secures €2.8 million in seed funding from Coatue, Volta Ventures, and Antler. With this funding, FERO will be able to further develop its unique online payment solution in order to address the $5 trillion in revenue that businesses lose every year at the time of checkout.
The funds that are raised from this seed round will be used by FERO to expand its staff in the US and Europe as well as enhance its product line in order to cater to more merchants globally.
Co-founders Craig Savage and Maximilian van Boxel saw firsthand how difficult it has become for end-merchants to handle payments at checkout after working with Ekata, a global payments fraud solution, and later Mastercard (when Ekata was bought).
Craig Savage, Co-Founder and CEO, FERO Payment Science said,“As a payments data scientist, I was shocked when I started to uncover the level of abandonment during the checkout and payment journey. Today, upwards of 45% 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,We founded FERO to help retailers deliver a more seamless and customised shopping experience to their customers.”
Elena Sakach, Partner at Coatue said, “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, 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.”
FERO’s system analyses every customer, their actions, and their behaviour to forecast the chance that a purchase will be fulfilled. By using segmentation, multi-classification prediction, and reinforcement learning in a sequential manner, FERO is able to recognise a shopper’s preferred purchase and provides the best possible payment experience.
Their goal at FERO is to revolutionise online checkout and deposit processes for customers by making them easy and customised while assisting businesses in recouping lost sales.
They use cutting-edge data analysis and predictive technologies to empower retailers globally and improve the checkout and deposit experience.