Meet ProcessOut, a French startup that automatically directs negotiations to the best payment provider. This way, big online services can begin utilizing several payment providers, pay fewer fees and minimize the number of reduced transactions.
The startup has recently invested $1 million from several business angels, like BlaBlaCar CTO Francis Nappez, former PayPal Director of Global Business Development Benjamin Blasco, Amadeo Brenninkmeijer and Logmatic CEO Amirhossein Malekzadeh. ProcessOut is also promoted by Techstars and 50 Partners.
Cyril Chemla, co-founder and CEO told, “Look at how companies, such as Airbnb and Dropbox, handle payments. Those companies have teams of 10, 15 or 20 people who work full time on optimizing the technical and economical performance of payments.” He also told, “ProcessOut acts like those payment teams for Datadog, BlaBlaCar or Vente-Privée.”
Behind the scene, ProcessOut has developed a smart routing service that joins hands with many of the payment service providers. The startup’s largest clients save a ton of money by utilizing ProcessOut.
In the recent days, several small startups begin accepting payments by signing up to a developer-friendly payment provider, like Braintree or Stripe. But utilizing Stripe does not actually make sense when you are processing millions of transactions per year. You want to optimize and generate few redundancy.
For example, banks frequently have their own payment service providers. They are usually difficult to work with and fairly ugly, but they are also much cheaper than modern alternative service.
But that does not mean you should switch altogether to a bank’s payment service provider. Several transactions crash due to technical reason, or because the payment service provider or the customer’s bank have considered the transaction very dangerous — it is a non-negligible factor.
ProcessOut has developed two different services. Initially, Telescope allows you to detect all your transactions in a few minutes and provide you recommendations. For example, the service can tell you that you are overpaying for transactions in the U.S., that your reduce rate has been increasing lately and more. This service is free and a significant way to pull recent customers.
Secondly, ProcessOut has developed its own checkout module to operate as an intermediary between your client and your payment service providers. The startup can store credit card information, which makes it simpler to swap to a latest payment service provider.
ProcessOut customers can then hook the service with several payment service providers and permit the startup manage payments. While it is simple to find out the low-priced provider, it is much difficult to understand if the bank that provided your customer’s credit card is going to accept or reject the transaction. That is the reason why ProcessOut is slowly learning how each bank works.
The startup takes 1c to 5c every transaction. ProcessOut states that it represents less than 10 percent of what you save on fees and failed transactions. It should be a simple sell.
more recommended stories
Facebook has another privacy screw-up on its hands
Facebook has another privacy screw-up.
Media group Naspers considering to invest in Singapore’s startup Carousell
Naspers is reportedly in talks.
The latest add-on is set to drop at certain point this summer
Essential has been nearly radio.
Apple is introducing a new Walkie-Talkie app for Apple Watch users
Kevin Lynch from the watchOS team.