FERO, an emerging frontrunner in online payment solutions, has finalised a $3m seed round, with substantial backing from renowned investors including Coatue, Volta Ventures, and Antler.
With a keen focus on addressing a significant gap in the online market, FERO will use the fresh capital to expand and enhance its payment solution so it can combat the staggering $5trn annual revenue that merchants forego at the critical checkout stage.
The duo behind FERO, Craig Savage and Maximilian van Boxel, enriched their insights into the convolutions of payment processing during their stints at Ekata, a revered global payments fraud solution, and later at Mastercard following Ekata’s acquisition.
A concerning trend has emerged in the digital shopping landscape. Despite reaching the checkout stage, a vast majority of online shoppers frequently leave without sealing the deal. This widespread, generic checkout experience, which unfortunately doesn’t cater to individual needs, is largely to blame for these missed conversions. During their involvement in Antler’s founder residency in 2022, the brains behind FERO recognised a golden chance to craft tailored purchase preferences. Their aim? Making the payment journey as frictionless and user-friendly as possible.
Voicing his concerns, FERO’s Co-Founder and CEO, Craig Savage 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.”
Highlighting the novelty of FERO’s approach, Elena Sakach, Partner at Coatue, noted, “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.”
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