Amsterdam fintech FERO secures €2.8M from Antler, others

Amsterdam-based FERO Payment Science (FERO), a company that aims to enable bespoke checkout and payment journeys for customers, announced that it has secured $3M (approximately €2.84M) in a seed round of funding. 

The investment came from Coatue, Volta Ventures, and Antler.

Elena Sakach, Partner at Coatue says, “While payment innovations have made transactions faster and more seamless, few solutions have looked at the behaviour of shoppers to understand why so many items are left un-purchased in the online shopping cart.” 

“It’s exciting to see the FERO team take a unique approach that leverages behaviour analytics to deliver purchase solutions that will improve the shopping experience and drive revenue for retailers,” adds Sakach.

Capital utilisation

FERO says it will use the proceeds to expand and improve its online payment solution. The company also looks to build its team across Europe and the US and further enhance its product offerings to serve more retailers globally.

Why do companies use Fero?

Co-founders Craig Savage and Maximilian van Boxel, previously at Ekata and Mastercard, witnessed the complexity of online payments for merchants. They identified a common problem: most shoppers reaching checkout don’t complete purchases due to the generic approach.

During Antler’s founder residency in 2022, they found a solution, FERO Payment Science. Their aim is to simplify payments by introducing personalised purchase preferences for consumers to complete transactions.

FERO claims to use advanced data analysis and predictive technology to enhance these experiences and assist merchants in recovering lost revenue.

Co-founder Craig Savage explains, “As a payments data scientist, I was shocked when I started to uncover the level of abandonment during the checkout and payment journey. Today, upwards of 45 per cent of customers place items in their shopping cart but never finalise their purchase due to payment-related issues. This translates to over $5.2T of lost revenue per year.”

FERO claims that its solution analyses shopper behaviour using advanced techniques like segmentation, multi-classification prediction, and reinforcement learning. 

By understanding individual preferences, FERO customises payment methods and journeys, minimising friction, such as 3D secure authentication challenges, and enhancing the overall payment experience.