A start-up has launched a product aimed at helping the likes of Uber and Facebook recoup millions of dollars in lost revenue from failed debit and credit card transactions.
Around 85 percent of all worldwide e-commerce credit card transactions are approved. The remaining 15 percent is revenue which is lost to the world's biggest companies.
This is where Adyen, a Dutch start-up valued at $2.3 billion, comes in. Its clients include Facebook, Uber and Spotify.
The firm has launched a product called RevenueAccelerate which it claims has helped the organizations that piloted the feature to generate an average annual return of 1.43 percent.
Of the 15 percent of transactions that fail, 10 percent is declined for legitimate reasons, such as insufficient funds, whereas 5 percent is caused by flaws in the system, due to the complex nature of clearing a card payment. RevenueAccelerate is designed to turn this 5 percent of failures into revenue for merchants.
"If you look at Facebook, Uber, Spotify, if you can get 1.5 percent revenue without doing anything, that is very relevant as you get more revenue and it eliminates frustrated shoppers," Pieter van der Does, chief executive of Adyen told CNBC ahead of the Money 2020 fintech conference in Copenhagen.