FlexPay, a Montreal-based startup using AI to help merchants recover lost revenues from declined transactions, has raised $6 million in a funding round led by Impression Ventures and joined by BMO Capital Partners.
FlexPay says credit card issuers report that 24% of recurring transactions are falsely declined, costing e-commerce merchants hundreds of billions of dollars in lost sales.
It uses AI and machine-learning to analyse billions of transaction records to reverse-engineer why risk-mitigation systems are falsely declining transactions. Then this real-time data helps get valid transactions approved.
Laurent Binda, CFO, FlexPay, says: "Securing this specialised group of institutional investors gives us the capital, experience and network we need to accelerate our progress in solving falsely declined credit card transactions."