Improving Acceptance Rates through Exemptions Optimization
Klarna, a prominent player in the buy now, pay later space, partnered with Checkout.com to enhance the payment experience for its customers. By leveraging Checkout.com's Intelligent Acceptance product, Klarna achieved a 6% increase in acceptance rates for transactions under €30 in key markets. This uplift was facilitated by dynamically applying exemptions like 'Low-Value' and 'TRA' based on issuer preferences. Through Intelligent Acceptance, Klarna navigated the complex SCA landscape, minimizing soft declines and processing costs while ensuring a smooth checkout process for its users.
Optimizing Network Tokens for Enhanced Payment Performance
Network Tokens presented Klarna with an opportunity to lower processing costs and boost acceptance rates. However, varying issuer adoption and capabilities posed challenges. With Intelligent Acceptance, Klarna could intelligently apply Network Tokens based on issuer support, ensuring optimal performance. The solution's automatic retry feature also contributed to a 0.15% increase in acceptance rates and a significant 70% reduction in non-tokenization fees from Mastercard. By abstracting complexity, Klarna effectively utilized Network Tokens to enhance payment processes.
Sustainable Optimization and Future-Proof Strategies
By partnering with Checkout.com and leveraging Intelligent Acceptance, Klarna can continuously optimize payment processes in real-time. The AI-powered optimization engine helps Klarna adapt to evolving issuer preferences and industry dynamics. This proactive approach not only improves current performance metrics but also equips Klarna with future-proof strategies. Through continuous optimization and support from Checkout.com's payment experts, Klarna can ensure seamless customer experiences, higher acceptance rates, and reduced processing costs, driving mutual benefits for the company and its merchant partners.