NEW YORK–(BUSINESS WIRE)–Riskified, Ltd. (NYSE: RSKD), a fraud management platform enabling frictionless e-commerce, and Axerve, a leading Italy-based payments center that has developed a platform to orchestrate payments worldwide, have launched an expanded strategic partnership to bring Riskified machine learning solutions, including PSD2 Optimize, to Axerve’s customer portfolio. One of Axerve’s first customers to implement PSD2 Optimize, KIKO Milano, received an exemption of almost 99% Strong Customer Authentication (SCA) orders using Transaction Risk Analysis (TRA), and more ten% increased transaction approval rates.
Since compliance with European Union PSD2 regulations, SCA requirements have added complexity for merchants. PSD2 Optimize enables merchants to minimize the effect of EU PSD2 regulations on their e-commerce operations by leveraging TRA exemptions to provide a seamless and secure payment experience for legitimate users and low-risk orders, and for the use of 3D Secure (3DS) payments to be applied only when necessary. In an era where e-commerce continues to grow, ensuring frictionless solutions is essential to improve the shopping experience for consumers and the collection experience for merchants.
PSD2: the double-edged sword of customer experience
Axerve works with over 100,000 customers worldwide, and their ultimate goal is to simplify complex payment processes for their customers, while ensuring high standards of security. When PSD2 came into effect, e-commerce merchants across Europe immediately felt its effect on the customer journey: the added friction to the checkout flow caused shoppers to abandon their carts, negatively impacting on conversion rates. KIKO Milano, in particular, has experienced a high volume of support tickets from customers complaining that they cannot complete their purchase. With nearly 70% of orders disputed by 3DS, accompanied by a high rejection rate, they realized they needed a tool to optimize their payment process and secure their revenue – while ensuring full compliance with regulations.
The Riskified approach: more optimization for less friction
To help merchants overcome the challenges imposed by PSD2, Axerve has introduced Riskified PSD2 Optimize as part of its payment processing platform: Axerve Guaranteed Payments. KIKO Milano, a long-time Axerve customer, has always advocated investing in new solutions to improve the customer experience and was looking for a fraud prevention solution to reduce fraud costs and increase conversion rates.
“When PSD2 went live, Axerve informed us that our rate of declined transactions was increasing rapidly, and our customer service team also alerted us that the number of tickets opened by customers was increasing fourfold,” said Diego Morgandi, e-commerce director at KIKO Milano. “We were delighted to hear about Axerve’s Riskified solution, and we immediately wanted to test it. The benefits of PSD2 Optimize were immediate. We have seen a reduction in failed transactions, which has increased the approval rate and allowed us to offer our customers a true frictionless payment experience. This partnership is the key to our success.
In an environment as complex as the payments ecosystem, flexibility and innovation are fundamental to satisfy the growing need for protection across the entire payment process while making it as smooth and transparent as possible while being secure and compliant. Riskified’s solutions help e-commerce merchants securely approve more orders, increase revenue, expand into new markets, and deliver a better customer experience. Through the partnership with Axerve, e-commerce merchants across various industries in Europe can now take advantage of Riskified’s PSD2 Optimize solution to take advantage of exemptions and ensure a frictionless checkout experience for their customers.
“As a partner of our customers in the world of payments, it is our duty to always offer the most innovative solutions that allow us to guarantee our customers the best possible authorization rate,” said Alessandro Bocca CEO of Axerve. “The initial phase of PSD2 adoption was difficult because the system and the industry were not equipped to meet the challenge, both in managing the authentication part and on the issuer side to manage the exemptions that resulted in a large loss of conversions. The challenge of SCA, and fraud management in general, became an opportunity after being able to partner with Riskified, best in class in fraud prevention.
“When PSD2 was introduced, we knew our merchants and partners needed an immediate solution. They needed to comply with regulations and implement 3D-Secure while taking advantage of exemptions to improve their customer experience. For a trader to maximize waivers, they need to perform trade risk analysis and identify low-risk orders, and that’s exactly the capability that Riskified has because we’ve perfected it over the last decade. “, said Naama Ofek Ard, Chief Operating Officer at Riskified. “Ultimately, the goal of everyone involved is to provide higher conversion rates for our merchants and a smooth experience for their customers, and this partnership is a testament to our mission and capabilities.”
Riskified enables businesses to realize the full potential of e-commerce by making it safe, accessible and frictionless. We’ve built a next-generation e-commerce risk management platform that empowers online merchants to build trusted relationships with their consumers. Leveraging machine learning that benefits a global network of merchants, our platform identifies the individual behind every online interaction, helping merchants, our customers, remove risk and uncertainty from their business. We increase sales and reduce fraud and other operating costs for our merchants and strive to deliver a superior customer experience, compared to how our merchants performed before onboarding.
Part of Fabrick’s Fintech ecosystem, Axerve represents more than 100,000 active customers, as a business development partner helping them understand, anticipate and meet market needs through technological and innovative point-of-sale solutions. and e-commerce. Axerve accompanies them nationally and internationally and in each market, integrates value-added services to meet the needs of physical and online stores with a personalized user experience, offering more than 250 payment methods. The offer consists of a single platform to accept any type of payment, from all physical and digital channels, in a clear, simple and secure way, through physical and digital gateways, such as points of sale, e-commerce solutions, ATMs, applications and value-added services; with the aim of offering an answer to all questions in the field of payment acceptance, by offering new solutions (in-store, mobile and digital) adapting to the specific needs of customers. Axerve Ecommerce Solutions has strong leadership in online payment management services across all product areas. www.axerve.com/en
About KIKO Milano
KIKO MILANO was created and founded in 1997 by Percassi. It is an Italian professional cosmetics brand that offers a cutting-edge range of makeup, face and body care.
Safe and effective products of the highest quality, created to meet the beauty demands of women of all ages.
Find your own beauty – this is how KIKO sums up its vision of Beauty. Thanks to its extraordinarily wide and diversified range of products, KIKO allows everyone to express their own personality. An unparalleled variety of colors, effects and unique sensations on the market to adapt to your specific style, complexion, skin type and tastes, at every stage of your life.
KIKO’s identity is rooted in “Made in Italy” values as the world capital of fashion, art and design. Artisans of original textures, colors and the evolution of beauty, we offer quality formulas with guaranteed performance, for a perfect fusion between quality and creativity.