FlexPay, a Canada-based fintech that uses AI and machine learning to help merchants recover lost revenues from declined transactions, announced on Monday it secured $6 million through its latest investment round, which was led by Impression Ventures with participation from BMO Capital Partners and Anges Québec.
Founded in 2011, FlexPay states it has built an AI-driven software that is able to analyze the varying attributes of transactions in order to save money in chargebacks and salvaging decline rates.
“Before we were FlexPay we were online merchants. We were selling subscription products direct to consumers and knew that selling online came with risks and costs. Our chargeback rates were through the roof, so we decided to take care of this problem ourselves. We have a deep and long history with both acquiring and card issuing banks. This is how we understand the systems that control the transaction approval processes within issuers for CNP transactions, known as a ‘risk decline system.'”
Speaking about the company’s software and progress, Darryl Hicks, CEO of FlexPay, stated:
“2019 was a year of significant in-roads. We surpassed the 2 million declines-processed mark and multiplied our integration points 8-fold, giving us access to a pool of 4 billion dollars in annual declines, 40,000 merchants and 80 million end-customers. The next logical step was to invite venture partners to join us and add their capital and expertise to accelerate us to help billions of end-customers get their transactions approved.”
While sharing more details about the investment, Maor Amar, Managing Partner at Impression Ventures, added:
“We believe FlexPay to be the best-in-class solution in a massively underserved market,” reflects , “The company’s AI powered systems provide a solution to the large and rapidly growing problem of false credit card declines. FlexPay’s management team has an impressive entrepreneurial track record, in depth knowledge of this market and the passion and energy required to succeed. We are thrilled to join them on this journey.”