FlexPay and Spreedly Team to Recover Failed Subscription Payments

Open payments platform Spreedly has expanded its partnership with payments company FlexPay.

The new collaboration, announced Wednesday (June 26), is designed to recover failed transactions and eliminate involuntary churn for subscription customers.

With this expansion, FlexPay will offer Spreedly customers its Advanced Vault, a solution designed to increase transaction success rates, reduce the overall cost of managing payment vaults, and improve the end customers’ experience.

“We work closely with our subscription customers to employ new financial metrics better to connect the results of retention initiatives to profitability,” said Charles Weiss, vice president of engineering at FlexPay. “Part of that story is the long-standing relationship with Spreedly that drives more value for our customers by taking away much of the integration complexity found in most payment stacks.”

Daniel Scagnelli, Spreedly’s senior vice president of client services, added: “Partnering with other innovative payments technology providers like FlexPay further increases the value we can bring to merchants globally. There is powerful alignment in our vision to unlock choice among PSPs, fraud tools, and other innovative payment services to improve customer experience, lower churn, and improve lifetime value.”

As PYMNTS reporting and research has shown, failed payments are a continual challenge for merchants. For example, “Fraud Management, False Declines and Improved Profitability,” a PYMNTS Intelligence and Nuvei collaboration, found that 11% of transactions processed by the average eCommerce firm failed in the past year.

However, “few merchants have a clear understanding of the underlying causes,” PYMNTS wrote earlier this year. “In fact, over 80% cite difficulty in pinpointing the causes of failed payments as a major challenge, with nearly 64% ranking it as their top challenge.”

Meanwhile, PYMNTS spoke late last month with Peter Doughterty, Spreedly’s president, who said a steady diet of data and a willingness to shift when necessary will be the keys to success amid a shift in consumer spending patterns.

“As a savvy business operator, flexibility to make pivots is super important to run a great business,” Dougherty said. “Having access to data to make those decisions, but also having the flexibility to pivot and bring new products to market is key.”