Subscription management and recurring billing provider sticky.io has partnered with payment decline management firm FlexCharge.
This collaboration, announced Tuesday (Oct. 17), aims to address the issue of cart abandonment and lost revenue due to payment failures faced by eCommerce merchants.
According to research, online merchants lose 62% of customers who experience a failed transaction. This not only results in a negative customer experience but also poses a significant risk of losing those customers to competitors. The financial implications of payment declines are staggering, with estimated losses of approximately $600 billion each year when considering lost sales, customer acquisition costs, and diminished customer lifetime value.
To tackle this critical challenge, sticky.io and FlexCharge have joined forces to provide a solution. Instead of displaying a payment failure message when a customer’s chosen payment method encounters an issue, the combined solution seamlessly enables customers to complete the purchases.
“We’re thrilled to demonstrate how merchants can innovate and boost profitability, even amid growing industry challenges, regulations, and compliance requirements. We’ve seen firsthand on our platform that decline rates are soaring, and this collaboration with FlexCharge is a game-changer, rescuing hundreds of millions in revenue for our valued merchants,” said sticky.io President and CEO Brian Bogosian.
What’s more, new research from sticky.io and PYMNTS Intelligence shows that failed payments cost merchants some of their best subscribers.
FlexCharge’s AI technology can handle payment declines for all reasons, not just fraud-related reason codes like insufficient funds or credit availability. If a payment is declined, the transaction is sent to FlexCharge in real-time to assess and determine eligibility for approval within milliseconds, with little to no customer interaction required.
The result of this partnership is a significant boost in approval rates, an increase in sales, and enhanced customer retention for eCommerce merchants. The sticky.io and FlexCharge solution offers a frictionless experience that sets it apart from other offerings in the market, with no checkout changes, redirects or registrations required. As leaders in their respective fields, both companies are committed to helping eCommerce businesses thrive in today’s competitive landscape.
“We couldn’t be more excited to partner with sticky.io, a company renowned for its expertise and excellence in the industry. Together with Brian and the exceptional team at sticky.io, we are committed to providing our clients the necessary tools to fuel business growth,” said Ze’ev Shoval, CCO and Co-Founder of FlexCharge.